Sewon ENC Sells Subsidiary Cellontech and Pneumatic Equipment Division... "Full-Scale Business Restructuring"

[Asia Economy Reporter Hyunseok Yoo] Sewon ENC announced on the 31st that it will enhance financial soundness and secure liquidity to ensure the sustainability of assets under construction through the sale of its long-term deficit business unit, the Power Limb (hereinafter PL) division, and the public sale of its bio-business subsidiary, Cellontech.

On the 28th, Sewon ENC decided to transfer the PL division's business operations to Elso Co., Ltd. The transfer includes all assets and goodwill related to the PL division's power limb equipment, with the transfer price kept confidential due to business necessities. The transfer procedures between the two companies are scheduled to be completed next month. Additionally, Sewon ENC will proceed with the public sale of Cellontech, a subsidiary established through the physical division of the bio-business division. More than 51% of the shares held by Sewon ENC, including management rights, will be sold.

A Sewon ENC official stated, "Despite efforts to localize the PL division, it has continuously recorded losses for over 10 years following the termination of overseas technology license contracts, leading us to restructure the business focusing on profitability. We will boldly streamline uncompetitive businesses and concentrate our capabilities on restructuring to improve the efficiency and competitiveness of the chemical plant equipment business through qualitative growth of our core business."

He added, "With a new acquirer securing liquidity proactively, Cellontech is expected to gain momentum in constructing a large-scale bio-collagen production plant currently under expansion."

Cellontech is currently smoothly advancing a project to expand stable mass production infrastructure to meet global demand through the ‘RMS CAMP’ being built in Geumgok General Industrial Complex (located in Namyangju-si, Gyeonggi-do). Recently, the new bio-collagen therapeutic material product has reached the final stages of regulatory approval, and significant sales growth is expected starting from its launch in the second half of this year.

A Sewon ENC official explained, "Funds secured through the sale of the business unit and subsidiary will be used for operating capital and new business investments. With the recent expansion of facility investments in the upstream petrochemical sector, the chemical plant equipment business is showing strong performance, and we will focus all efforts on securing project orders."

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