SKC Completes Construction of PET Film Plant in China








Ÿ Joint venture with Toyobo and Toyo Aluminum for world-class quality and stable client _ base_ guarantee.

Ÿ Korea will take a leap as a No.1 PET film producer by developing a global production system in same manner as US

Ÿ Strengthened position as producer with largest market share in high function PET film for use in thermal contraction, optics, and solar batteries





Construction completion ceremony held for PET film plant in China



On September 29, SKC (CEO Park Jang Suk) held a construction completion ceremony for its new jointly-owned PET film plant (corporate name: SKC Jiangsu Hightech Plastics) in the Nantong Economic and Technological Development Area (NETDA), in Jiangsu Province near Shanghai. Present at the ceremony were more than 300 guests including SKC President Choi Shin Won, SKC CEO Park Jang Suk, The National Committee of The Chinese People’s Political Consultative Conference Vice-Chairperson Han Fang Ming, Qu Bao Xian the secretary of NETDA, ShangHai Consul General Gu Sang-chan, CEO s of joint ventures, Chinese government related guests. The Jiangsu plant was established as a joint corporation in August 2011, and its construction began in October 2011 on a 330,500 square meter lot. Finally after two years, 33,000 ton capacity of two-line holding plant had been complete.



Global production _ base_s secured in Korea, US, and China

With the completion of the Jiangsu plant, SKC has now secured a production _ base_ in China in addition to Suwon and Jincheon plants in Korea and its Georgia plant in the US, that led an establishment of a global production system. There are now a total of 21 production lines with a combined PET film production capacity of 240,000 tons.



High expectations for global joint synergy effect in PET film market

In this joint corporation, SKC owns a 44% stake while SK China has 33%, Toyobo 15%, and Toyo Aluminum and other Japanese client companies have 8%. Toyobo was the first company in the world to commercialize shrinkable and optical film and is recognized throughout the world as having the best high function film technology. Moreover, the investment of Toyo Aluminum, a global producer of solar battery back sheets, guarantees not only the global competitiveness of product quality but also a stable client _ base_—both of which are expected to a joint synergy effect.

CEO Park Jang Suk stated, “Today, only the strongest survives and, the completion of the Jiangsu plant has provided for SKC to jump as the top film producer in the world,” he continued “We, Toyobo, other Japanese client and companies and SKC, will strengthen our strategic alliances”



Strengthened position as top producer of shrinkable, optical, and solar energy-use PET film

China is the world’s largest PET film market, and it is expected to expand even further due to industrial acceleration. In particular, the demand for shrinkable, optical, and solar energy-use films, categorized as high function PET films, is predicted to steadily rise due to the replacement of PVC film packaging containers, the trend toward eco-friendly PVC film products, especially in China’s LCD industry, and the strengthened dominant position of China’s solar energy industry in the global market. Through its construction of a PET plant in China, SKC plans to dominate the Chinese market by establishing a global production system that can produce 300,000 tons of PET film by 2015, further strengthening its position as the company with the largest market share in the high function PET film global market. [END]