SKC (CEO Park Jang Suk) held a board meeting on July 13, 2007 to gain the board’s approval to proceed with a joint venture between SKC and Rohm and Haas. SKC will pursue the creation of a new display materials manufacturing joint venture.

The display materials division of SKC that manufactures specialty films, optical filters, and mill _ base_ in its Cheonan Plant will be separated from SKC in order to proceed with the joint venture. Thereafter, Rohm and Haas will invest $190 million in this entity to a new joint venture company. SKC will own 49% of the joint venture company while Rohm and Haas will possess 51%. SKC will appoint the CEO of the joint venture while important management decision will be jointly agreed upon with Rohm and Hass.

As the world’s largest manufacturer of optical films for LCD screens, SKC was in the midst of integrating its display materials operations to increase efficiencies when the opportunity to merge the business with Rohm and Hass arose. CEO Park Jang Suk believes that bringing the excellent display materials and performance chemicals technologies of Rohm and Hass into a joint venture with SKC’s display materials business would a world-class manufacturer of display materials. Thus, SKC began a round of talks with Rohm and Haas to a joint venture.

Upon the completion of the joint venture, SKC will realize gains of 53 billion won from the sale of its shares to Rohm and Haas, and an increase of 161 billion won in cash flow. This will reduce SKC’s debt ratio to 117% from 149%. The cash inflow from the sale of stocks also owned by SKC’s affiliate companies will be used to fund expansion plans in existing businesses and entering new markets.

Rohm and Haas develops coatings, electronic materials, and performance chemicals. With over 100 manufacturing facilities spread over 27 countries, Rohm and Hass also has 35 R&D Centers. Based in Philadelphia, PA, the company generated annual sales of approximately $8.2 billion in 2006 and is currently the world’s fifth largest chemical company. In April 2007, Rohm and Haas acquired Kodak’s Light Management Films business to expand its presence in the display business and gain key technologies in optical materials.

This joint venture between Rohm and Haas and SKC will lead to close collaborations in various fields in the chemical and films businesses and produce wide-ranging synergies. The recent acquisition of Kodak’s Light Management Films business by Rohm and Haas has put forth discussions of a merger between the Kodak Light Management Films’ Korean manufacturing operations with SKC’s Cheonan plant. Kodak’s portfolio of current and future display materials products that were acquired by Rohm and Hass will be merged into the new venture. Therefore, the new joint venture will be in a strong position to take advantage of the technologies from Kodak and develop advanced products in the future.