The South Korean chemical manufacturing company liquidated its stake in its chemical business by transferring 49 percent of the business to Petrochemical Industries Company located in Kuwait. The company would receive 565 billion won ($455 million) on Tuesday.
The decision would establish a joint venture called SK picglobal with both companies cooperating to create a production capacity of 100 metric tons of propylene oxide. SKC values the business collaboration at 1.45 trillion won ($1.17 billion).
Early this month, the SKC sold Korea PI Holdings a 27.03 percent stake of SKC Kolon PI for 303.5 billion won ($244 million). Established in 2008, SKC Kolon PI is a joint venture between SKC and Kolon Industries, the largest polyimide film company in the world. The combined company holds a 30 percent market share in the sector.
The two deals allowed SKC to raise 865.5 billion won ($700 million) worth of funds. The company was also relieved from 300 billion won ($242 million) value of borrowings after carving out its chemical business to PIC last February.
An SKC official said that the company pledged to move from its chemical business and inject additional capital in mobility, semiconductor, display, and environmental industries, improving its financial structure during the process.
The company stated that it would focus its accumulated investment on new electric vehicle battery materials and technology. The company also said that it’s looking into creating a global production facility after completing the acquisition of KCF Technologies, one of the leading manufacturers of battery copper foil for EVs.
SKC President Lee Jae-wan said that they pursued a shift from oil with a determination for a fundamental change despite so many challenges.
He added that despite concerns over global economic slowdown by the recent COVID-19 outbreak, the company would do its best to transform its efforts for innovating business model into a tangible result.