Yukil CNST, Enters Chemical Materials Business ... "Second Leap"

[Asia Economy Reporter Hyunseok Yoo] Specialized IT tempered glass company Yukil CNES announced on the 20th that it is entering a new business field by signing a contract to acquire CNA, a precision chemical essential materials manufacturer.

CNA, located in Eumseong, Chungbuk, was established in 2001 and produces essential chemical materials such as UV absorbers, PVC composite stabilizers, and curing agents. It has facilities capable of producing over 2,000 tons annually, optimized for small-lot, multi-product chemical material production. It possesses specialized technology in the field of ultraviolet stabilizers and new material development.

As of 2020, CNA's sales and operating profit were 17 billion KRW and 1.3 billion KRW, respectively. Over the past four years, the average annual sales were 15.3 billion KRW, and operating profit was 1.4 billion KRW. The debt ratio stands at 87.4%. For reference, as of the first half of 2021, sales and operating profit were 11.3 billion KRW and 1.9 billion KRW, respectively.

After LG Electronics' MC (Mobile Communications) division officially declared its business withdrawal in April, Yukil CNES, which was affected by about 80% of its total sales, has been seeking ways to revitalize its downsized 3D glass business and enter new business fields such as secondary battery materials.

A Yukil CNES official stated, “Since the decision of LG Electronics MC division's withdrawal, we have reviewed future business directions and have strived to revitalize existing businesses using current facilities and establish new businesses with secured business stability. Accordingly, starting with the acquisition of CNA, which has a stable business model, we plan to enter growth businesses through various methods such as M&A and joint ventures.”

Once the CNA acquisition is completed, Yukil CNES’s business scope will be reorganized into a two-track business structure consisting of the existing automotive and other IT device 3D glass business and the chemical business.

The driving factors behind Yukil CNES’s push to acquire CNA include ▲ CEO Koo Ja-ok’s extensive management know-how accumulated from operating a chemical manufacturing company in the recycling field before and after establishing Yukil CNES, ▲ the high possibility of expanding to large clients due to CNA’s track record of dealing with leading domestic companies after acquisition, and ▲ the strategic use of business sites in Vietnam and Hong Kong as bases for easy entry into overseas markets such as Southeast Asia.

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