- Deal expected to allow stable supply of hydrogen peroxide, main material for propylene oxide, and boost cost competitiveness
- SKC boosts strategic partnership with Evonik, Germany-_ base_d global fine chemical producer

On November 12, SKC (Park Jang-seok, President) announced that it signed a contract at Evonik Degussa GmbH’s head office in Germany to take over a 45 percent stake in Evonik Degussa Peroxide Korea (EDPK), the Korean unit of Evonik, for 23 billion won.

EDPK, Korea’s largest producer of hydrogen peroxide, was established in Ulsan in 2006 by Evonik, a global supplier of fine chemicals. Through its acquisition of the stake, SKC has not only secured a stable supply of hydrogen oxide, the main material for its flagship chemical product, propylene oxide (PO), but will also generate synergistic effects through diverse cooperative measures, thus significantly boosting its competitiveness in the PO business.

Evonik is a global producer of fine chemicals that has more than 30 types of chemical products ranking first or second in respective global market shares, including hydrogen oxide, methionine and MMA. By introducing Evonik’s technology, SKC achieved the world’s first commercialization of an HPPO plant, an eco-friendly PO production technology. Following the introduction of the technology, the purchase of the EDPK stake will allow SKC to further boost its partnership with Evonik, and accelerate its advance into the global PO business. Currently, SKC’s plant is the world’s only HPPO plant that uses Evonik’s technology.

PO is a main material for polyurethane, which is used in automobile seats and cushions, and SKC is the lone producer of the material in Korea. New demand for PO is expected to significantly expand, including SK Energy’s recently developed Green Pol (environmentally friendly plastic that uses carbon dioxide and PO). Also, the eco-friendly HPPO plant is expected to quickly replace conventional production plants as environmental protection policies are adopted by countries around the world.