Dongwon Systems Merges with MKC, a Subsidiary Manufacturing Cans for Secondary Batteries

[Asia Economy Reporter Lim Hye-seon] Dongwon Systems announced on the 19th that it will conduct a small-scale merger with its subsidiary MKC, which manufactures cans for secondary batteries.

The merger agreement date is set for August 20, and after the merger, MKC will be dissolved, with Dongwon Systems succeeding all its rights and obligations. The company name will remain Dongwon Systems, and the CEO after the merger will be Jo Jeom-geun, the current CEO of Dongwon Systems.

The merger ratio is 1 to 0 between Dongwon Systems and MKC, respectively. Dongwon Systems owns 100% of MKC's shares and plans to complete the merger on November 1 through a capital-free method without issuing new shares.

Dongwon Systems, an affiliate of Dongwon Group, is Korea's leading comprehensive packaging company capable of producing packaging materials for consumer goods including aseptic beverages, retort foods, pet food packaging, flexible packaging, steel cans, paper, and industrial films for food, beverages, cosmetics, household goods, and electronic devices.

Recently, it has also entered the secondary battery components business, transforming into an advanced materials company. Following the expansion of the aluminum cathode foil production line for secondary batteries at its Asan plant in Asan, Chungnam, last November, the company is strengthening its advanced materials business centered on secondary batteries by expanding into the secondary battery can business through this MKC merger.

MKC, established in 2002, specializes in manufacturing cylindrical cans for primary and secondary batteries. In 2005, it independently developed the 18650 standard (18mm diameter, 65mm height) cylindrical can for lithium-ion secondary batteries and has supplied major domestic battery companies such as Samsung SDI and LG ES. It was acquired by Dongwon Systems on April 22.

Dongwon Systems reported consolidated sales of 1.0785 trillion KRW and operating profit of 97.7 billion KRW last year. MKC's sales last year were approximately 10 billion KRW.

A Dongwon Systems official stated, "This merger is being carried out to increase management efficiency and strengthen business competitiveness to enhance shareholder and corporate value," adding, "We will strengthen our portfolio as a cutting-edge comprehensive materials company through domestic factory expansions and overseas market entry in the future."

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