SKC sells out lucrative film business to focus on semiconductors, batteries and eco-friendly businesses

By Lim Chang-won Posted : June 8, 2022, 16:41 Updated : June 8, 2022, 16:41

[Courtesy of SKC]

SEOUL -- SKC, a polyester film and chemical material manufacturer affiliated with South Korea's SK Group, sold its lucrative film processing business to Hahn & Company, a top domestic private equity fund, for 1.6 trillion won ($1.27 billion) to focus on materials for semiconductors and secondary batteries as well as eco-friendly businesses.

The equity fund purchased SKC's film business division, a film processing subsidiary, and U.S. and Chinese operations under a deal signed on June 8. SKC's film business produces products for industrial purposes and high-tech IT devices such as displays and mobile devices, recording 1.13 trillion won in sales and 68.9 billion won in operating profit in 2021.

SKC said its decision is to clarify its identity as a global environmental, social and governance (ESG) material solution company. Proceeds from its deal with Hahn & Company will be funneled into future growth engines and new businesses. 

"We will establish a business structure centered on secondary batteries, semiconductors, and eco-friendly business structures while establishing a foundation for 'leap and reap' by focusing on global expansion and future growth," an unnamed SKC official said in a statement on June 8.

In November 2021, SKC made a $3.3 million strategic investment in Nexeon, a British battery materials company with a unique silicon anode technology, to produce silicon anodes for electric vehicle batteries. The short-term goal is to acquire technology for the production of a composite anode material with low silicon content.

Graphite anodes are widely used for lithium-ion batteries, but researchers have tried to find a better solution because structural deformation occurs in graphite when charging and discharging are repeated, leading to the shorter life of secondary batteries.
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