● Q2 sales of KRW 827.2 billion and operating profit of KRW 135 billion, a surge of 44.6% and 169.5% YoY, respectively

● 1H2021 operating profit of KRW 219.4 billion tops the total operating profit of 2020  

● Declared the ESG vision ‘Origination for the Next Generation’ enhancing ESG projects including plastic recycling and biodegradable materials

SKC (CEO Lee Wan-jae) has posted KRW 827.2 billion in sales and KRW 135 billion in operating profit during the second quarter of 2021, recording the highest quarterly operating profit ever. Compared to the previous year, sales and operating profit surged by 44.6% and 169.5%, respectively. SKC also recorded KRW 219.4 billion in operating profit during the first half of the year, exceeding the total operating profit of 2020 in just six months.

On the 4th of August, SKC announced the results of its business performance during the second quarter of 2021 at its headquarters in Jongno-gu, Seoul, with key executives attending, including Lee Yong-sun, head of Industrial Materials Division, Won Ki-don, CEO of SK picglobal, Kim Young-tae, CEO of SK nexilis, and Oh Jun-rok, CEO of SKC solmics. SKC broadcast the earnings announcement live on YouTube this time, too.

Q2 earnings increased in all business segments. SK nexilis, a subsidiary specializing in the copper foil business for rechargeable batteries, recorded sales of KRW 157.6 billion and operating profit of KRW 18.8 billion. The company continued its full line operation system and achieved better results than in the first quarter. Most notably, thanks to the earlier kickoff of the fifth factory in Jeongeup, the company increased its quarterly production capacity by more than 10,000 tons sooner than planned. SK Nexilis is getting ready to accelerate the completion of its sixth factory to secure an annual production capacity of 52,000 tons while spurring its overseas expansion efforts.

SK picglobal, a joint venture in the chemical business, recorded sales of KRW 279.6 billion and operating profit of KRW 93.1 billion. The company’s proportion of high value-added PG sales soared as a result of its earnest efforts throughout 2020 to shift focus to a high value-added PG-centered product portfolio and a reliable global customer _ base_. The company is planning to continue its efforts to strengthen its PG-centered portfolio in the third quarter when strong demand is expected to continue growing while seeking to improve its supply stability by securing key global transport hubs.

SKC’s Industrial Materials Division recorded sales of KRW 273.9 billion and operating profit of KRW 25.9 billion. Despite rising raw materials prices, both sales and operating profit rose largely because demand increased for high value-added products. Notably, the operating profit margin jumped by 9.5% over the first quarter. In the third quarter, the company will respond to raw material price volatility by expanding its sales of high value-added products while accelerating its efforts to grow its eco-friendly biodegradable material business through collaboration with overseas unicorn companies, among others.

SKC’s semiconductor materials business led by SKC solmics recorded sales of KRW 112.8 billion and operating profit of KRW 7.8 billion, indicating a growth trend line. As customers continued expanding their production facilities, the company’s sales of ceramic parts increased significantly. During the third quarter, the company is planning to maintain its growth momentum with the start of commercial run of the new CMP pad factory in Cheonan. Most notably, the company is going to consider further expanding its production lines to meet the increasing demand for ceramic parts.

On top of its improving business performance, SKC is spurring its ESG management efforts. The corporation declared 2021 the first year of its ESG management. In its sustainability report published in July 2021, SKC presented its ambitious ESG goals such as ‘2030 Plastic Net Zero’ and ‘2040 GHG Net Zero. To this end, the company signed an MOU in June 2021 with a Japanese startup equipped with unrivaled technology needed to commercialize pyrolysis oil obtained from waste plastics and disclosed its specific plans to expand its biodegradable materials business.

 “In the second quarter of this year, we not only achieved record-breaking performance, but also laid the foundation for ESG management to achieve our plastic net zero and GHG net zero goals in time. We will accelerate our efforts to innovate our business models while implementing our ESG commitments more swiftly as a way to contribute to creating a sustainable society and a sustainable future for all.” said an official from SKC.