SKC to divest polyurethane assets, reinvent business structure

[Courtesy of SK pucore]

South Korean chemical company SKC announced the sale of its subsidiary, SK pucore, in a strategic move to streamline its non-core petrochemical operations and accelerate the transformation of its business model towards a focus on electric vehicle batteries, semiconductors, and eco-friendly materials.

The decision involves SKC divesting its 100 percent stake in SK pucore for 410.3 billion won ($305 million) to Glenwood Private Equity, as disclosed by the company on Thursday.

The deal also includes the optical polyurethane (PU) material business from Woori Fine Chem (WFC) acquired by SKC in 2019 and SKC intends to finalize the transaction by the end of 2023.

SK pucore, SKC’s key PU raw material business, has been manufacturing polyols for over three decades since 1991 and rapidly expanded its production bases abroad in the United States, China, Poland, and Mexico. Alongside SK picglobal, SK pucore has played a pivotal role in supporting SKC’s chemical business on a global scale.

The decision to divest SK pucore aligns with SKC’s vision to propel its business model towards becoming a global material ESG solution company, with a focus on EV batteries, semiconductors, and eco-friendly materials, the company said.