SKC shares rally on talk of $1.3 bn sale of PET biz to focus on battery materials

[Source: SKC]

Shares of SKC, the chemical materials unit of Korea¡¯s SK Group, are rallying on reports of the company engaged in talks with Korea-based private equity firm Hahn & Company, to sell its polyester (PET) film business for 1.6 trillion won ($1.3 billion) to enhance battery materials business.

According to sources in the local chemical industry on Friday, SKC will soon hold a board meeting to deliberate on sale of industrial materials division to Hahn & Company.

The chemical firm, founded in 1976, developed PET films for the first time in Korea. It produces various plastic films for videotapes and LCD displays and delivered 1.38 trillion won sale from the division last year.

It is selling the lucrative business that makes up over a third of its whole revenue to invest and enhance materials for electric vehicle (EV) batteries, other secondary batteries, and fuel cell.

SKC acquired KCF Technologies, No.1 copper foil manufacturer, in 2020, and renamed it to SK Nexilis. SK Nexilis took the largest share of 22 percent in the global copper foil market in 2021.

SKC is expected to use the proceeds from the sale to expand its production of copper foil, a core material for electric vehicle batteries, as the global demand for copper foil is burgeoning along with the expanding EV market.

SKC shares rose 4 percent to 165,500 won by midday.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]