KNW Acquires Onsan Fluorogas Business Unit from Global Chemical Company Solvay

[Asia Economy Reporter Jang Hyowon] K&JW is set to fully launch its fluorine materials business by acquiring the fluorine gas division of global chemical company Solvay Korea through its subsidiary.

K&JW proceeded with the acquisition focusing on Solvay Korea's Onsan Business Division and D&A (Distribution & Agency) Business Division. The Onsan Business Division manufactures fluorine gas, while the D&A Business Division handles the distribution and sales of various chemical substances. These divisions have been continuously generating operating profits.

Through this acquisition, K&JW plans to secure fluorine gas technology and further expand its business into the manufacturing of anhydrous hydrofluoric acid and the refining of hydrogen fluoride. Global chemical company Solvay possesses technologies ranging from fluorine-related raw materials to refining technologies.

A company representative stated, “According to the agreed technical cooperation, we will use patents and technologies related to product production, and even after the acquisition, we will continue business through mutual exchange and cooperation on fluorine technology with Solvay.”

K&JW focused on the growth potential of Solvay Korea's fluorine gas business. The products and technologies primarily operated by the Onsan Business Division are classified as core industries required for semiconductors, secondary batteries, fluorine compounds, and other sectors that have recently gained attention.

According to market research firm PMR (Persistence Market Research), the fluorine compound market is expected to grow to a scale of $1.07 billion by 2024. The semiconductor market is showing growth due to industrial expansion such as big data and 5G, and the secondary battery market is also being promoted by the increase in electric vehicles and energy storage devices.

Products from Solvay Korea's Onsan Business Division are currently supplied to semiconductor companies competing for the top positions in the global semiconductor market, and the supply volume has recently increased significantly. A company representative explained, “Since the supplied products are mainly used in fine processes, we predict that the supply volume will increase along with the rise in semiconductor production and new Fab investments.”

K&JW plans to expand the fluorine gas supply capacity of the Onsan Business Division through strategic investments after the acquisition. The company explained that it will be able to meet market demands through the continuously increasing customer demand and stable supply of high-quality products.

Oh Wonseok, CEO of K&JW, said, “We will improve the internal capabilities of the acquired company and actively respond to rapid market changes through continuous technology development to expand domestic and international sales shares,” adding, “We aim to achieve global No. 1 status in the fluorine gas sector used in semiconductors, secondary batteries, solar power, and display fields.”

Meanwhile, K&JW plans to continuously discover growth momentum such as this acquisition of Solvay's fluorine gas business while improving its own financial structure through bold restructuring of loss-making business sectors with weakened competitiveness among its current business areas.

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