Kolon Industries Secures 300 Billion KRW Funding... Prioritizes Investment in Aramid Fiber and Transparent PI Film

SKC Kolon PI Sells Entire Stake to Secure 303.5 Billion KRW
Secures Future Growth Investment Funds and Improves Cash Flow

[Asia Economy Reporter Hwang Yoon-joo] Kolon Industries has secured over 300 billion KRW in cash, laying the foundation for investment in future growth businesses.

Kolon Industries announced on the 9th that it has completed the sale of its stake in SKC Kolon PI, which had been underway since last year, transferring its 27.03% stake in SKC Kolon PI to Korea PI Holdings Co., Ltd. The sale price was 303.5 billion KRW.

SKC Kolon PI was established in 2008 as a joint venture between Kolon Industries and SKC. It is the world's number one company in the polyimide film market and was listed on the KOSDAQ market in 2014. The two companies agreed in the second half of last year to sell all their shares in SKC Kolon PI, selecting Glenwood PE as the preferred bidder and proceeding with the sale process.

Kolon Industries plans to utilize the newly secured funds to enhance existing businesses and invest in new future growth engines. Aramid fiber, which is contributing to improved performance through increased sales, and transparent PI film, which began commercial operation in May last year and is generating profits, are expected to be the primary investment targets. Additional investments are also being considered for the development of key components for hydrogen fuel cells and the establishment of new processes for petroleum resin.

To increase the company's future value, Kolon Industries plans to improve its business portfolio soon. Kolon Industries is currently building various forms of domestic and international partnerships while simultaneously promoting related projects. A portion of the funds secured from this sale will be used as investment resources to strengthen existing businesses and new ventures.

Jang Hee-gu, CEO of Kolon Industries, stated, "We plan to strengthen Kolon Industries' unique competitiveness by actively investing not only in organic growth based on the company's intrinsic capabilities but also in inorganic growth based on external capabilities such as mergers and acquisitions (M&A) and strategic cooperation for the future."

This content was produced with the assistance of AI translation services.