SK innovation chief places focus on electric vehicles
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Park’s remarks are viewed as an effort to assuage stakeholders’ concerns amid the underperformance of SK On, SK innovation’s secondary battery subsidiary, while also signaling a commitment to continued investment in the subsidiary.
SK innovation said on Wednesday that Park has been communicating with employees since February 2024, starting with team leaders, those with fewer years of service and executives via relay workshops. The CEO conveyed a message that the company’s strategic direction is sound, adding it would resolve any challenges it faces with technological expertise and talent.
Park’s communication initiatives come at a time when the electric vehicle market is facing a chasm ahead of its wide-scale adoption, and his move is seen as a commitment to continued investment in subsidiaries related to secondary batteries, including SK On and SKIET.
SK On recorded an operating loss of 581.8 billion won ($425 million) on a consolidated basis in 2023. SKIET, which produces battery materials such as separators, expects to see its operating profit hit 3.1 billion won in the first quarter of 2024, an 88 percent drop compared to the previous quarter.
At a workshop for SK innovation team leaders held at the Walkerhill Hotel in Seoul on Tuesday, Park said, “Although the electric vehicle market is currently dealing with challenges such as the recent slowdown in demand and deteriorating global business environments, the transition to electric vehicles is a planned future that will not change as the global climate crisis continues.”
“SK On must strive to enhance its competitiveness in five areas: price, technological prowess, quality, customer management, and fostering a positive corporate culture with excellent talent,” he added.
During the executive workshops held during the first and second weeks of April 2024, Park highlighted the challenges faced by green tech businesses like SK On and SKIET, likening it to reaching the uphill climb around the 35-kilometer mark in a marathon. He expressed optimism, saying that competitors are facing similar challenges and thus presenting opportunities for SK innovation.
Park reiterated that the vision presented in SK innovation’s 2021 future direction, “Carbon to Green,” remains unchanged. He urged employees to overcome the current difficulties with courage and determination, emphasizing that corporate management requires investment 5 to 10 years ahead of time.
Park also underscored the SK Management System (SKMS) introduced by the late former SK Group chairman Chey Jong-hyon. He recalled Chey’s perseverance in achieving the seemingly unrealistic goal of vertical integration from fibers to petroleum in a little more than a decade. Vowing to follow Chey’s example, Park aims to generate fruitful results at SK Innovation just as SK Group has consistently achieved success based on SKMS in times of crisis.
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