Signs agreement to establish joint venture for solar cell back sheet
SKC (President Park Jang-seok) signed an agreement on a joint venture with Keiwa of Japan on November 30 to advance into the business of producing solar battery cell back sheet (protective back sheet for solar battery cells). The joint venture will be established through a 25 billion won investment. The production facilities will be constructed in Korea, and will begin mass production from the second half of 2010.


Aiming to secure 15% share of global market, 200 billion won in sales in 2015
President Park Jang-seok said, “Responding to the needs of solar cell module companies, we will help strengthen the competitiveness of the Korean solar battery industry by pursuing domestic production and a stable supply of a key material for which Korea depends on foreign imports.” He added, “By securing global competitiveness early on in the solar cell materials field, we will aim to take up a 15 percent share of the global market and 200 billion won in sales in the back sheet business in 2015.”

Purpose of alliance with Keiwa of Japan
SKC decided to advance into the back sheet business with a view to boost global competitiveness in the solar battery materials sector, while creating synergistic effects with the existing solar cell film business. To this end, the company formed a strategic alliance with Keiwa, which supplies back sheet to major solar battery module producers in Japan and throughout the world by banking on world-class back sheet production technology.

Targeting solar battery materials business
SKC will continue to expand back sheet production from 10 million sq. meters in 2010 to 40 million sq. meters in 2015, and develop an overseas network in the U.S. and China. Additionally, the company plans to secure 300 billion won in sales in the solar cell film sector and 200 billion won in the back sheet business to emerge as a world-leading solar battery materials manufacturer with combined annual sales of 500 billion won in this industry.

Completing vertical integration of film materials for solar battery
SKC is the only company in the world that produces all types of films used in solar batteries, including polyester film, fluoride film, and EVA sheet. With its entry into the back sheet business, the company is set to complete the vertical integration of production ranging from films used in solar battery to Converting film.

Structure and market situation of back sheet
Solar battery back sheet is a core material that protects cells for over 20 years at the back end of the solar battery module. The product requires several important characteristics, including durability, weather endurance, insulation, and anti-humidity functions. Hence, it is generally produced by laminating fluoride film and PET film. The global back sheet market stood at 400 billion won as of 2009, and is expected to grow by over 30 percent per annum. SKC simultaneously completed the development of fluoride film and EVA sheet, which are used as key materials in solar battery production, and commercialized them in February. DuPont of the U.S. has been monopolizing the fluoride film sector for decades, while Japanese p s are dominating the EVA sheet market.