SM Group's subsidiary SM Gukil (formerly Kukil Paper) is moving to acquire Daijin Machinery, a company specializing in production equipment for secondary batteries and semiconductors.
On October 23, SM Gukil announced that it has been selected as the preferred bidder for Daijin Machinery. This selection is part of SM Gukil's strategy to discover new business opportunities and diversify its operations following a recent restructuring of its management.
SM Gukil has recently changed its name and is focusing on securing new growth engines beyond its traditional paper business by merging with Han-Duk Iron Ore Industry, the only iron ore producer in South Korea.
Founded in 1980, Daijin Machinery is a specialized manufacturer of industrial production equipment, primarily producing automation equipment for assembling battery modules and packs, as well as ingot growth equipment for semiconductor wafer manufacturing.
In the secondary battery sector, Daijin Machinery has supplied battery production equipment for energy storage systems (ESS) to LG Energy Solution, with related sales accounting for about 70% of its total revenue, establishing a solid foundation in the ESS equipment market.
Daijin Machinery's automation equipment for battery module and pack assembly is used in the production process that combines multiple battery cells into modules and packs. The ESS market is rapidly expanding due to increased electricity demand, the proliferation of renewable energy, and investments in AI data center infrastructure.
Daijin Machinery possesses technology related to secondary battery production and the manufacturing of single crystals of silicon for semiconductor wafer production.
Through this acquisition, SM Gukil plans to restructure its business model, which has primarily focused on industrial specialty paper, to expand into the fields of secondary battery and semiconductor production equipment. Additionally, it aims to maximize synergies within the group by collaborating with another subsidiary, SM Vexel, which produces batteries and specialty batteries for defense, drones, and ESS.
An SM Group official stated, "By pursuing the acquisition of Daijin Machinery, we will intensify our entry into new businesses such as ESS battery and semiconductor wafer production and processing equipment, while enhancing synergies with SM Vexel, which is already engaged in battery operations. We will also strengthen our capabilities in the advanced industrial equipment sector to steadily increase our corporate value."
* This article has been translated by AI.
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