SKC Reports Operating Loss of 36.9 Billion KRW in Q2..."Expanding Copper Foil Business"

Expansion of High-Value Markets in Copper Foil Business
Acceleration of Semiconductor Material Portfolio Restructuring

SKC Hightech & Marketing Cheonan Plant Photo by Yonhap News

SKC recorded sales of 630.9 billion KRW and an operating loss of 36.9 billion KRW in the second quarter of this year. Compared to the same period last year, sales (753.8 billion KRW) decreased by 16.3%, and operating profit (102.7 billion KRW) turned into a loss.

SKC stated, "Despite the decline in profits due to worsening internal and external business conditions, we will continue bold business restructuring and investments in the second half of the year," adding, "We aim to promote sustainable growth in our key business sectors." On this day, SKC announced its second-quarter business results at its headquarters in Jongno-gu, with key executives attending, including Im Eui-jun, CEO of SK PIC Global; Lee Jae-hong, CEO of SK Nexilis; Choi Doo-hwan, CEO of SK PU Core and SKC Chief Financial Officer (CFO); Kim Jong-woo, CEO of SK Enpulse; Shin Jeong-hwan, Head of Business Development; and Oh Jun-rok, CEO of Absolix.

In an additional session following the earnings announcement, SKC shared with the market the major issues by business segment and detailed management plans for the second half of the year. SK Nexilis, an investor in the copper foil business, is currently undergoing customer certification procedures aiming to commence commercial operations at its overseas production base in Kota Kinabalu, Malaysia, in the third quarter. More than 70% of major customer certifications have already been completed. SKC evaluated, "The Malaysia plant boasts world-class technology, productivity improved by more than 30% compared to the industry average, and overwhelming cost competitiveness with inexpensive power based on renewable energy."

Officials from SK Nexilis, an investment company in SKC's copper foil business for secondary batteries, are inspecting copper foil products produced at the Jeongeup plant. Photo by SKC

SK Nexilis plans to expand the number of global key customers to 15 within the year through new mid- to long-term contracts. In the mid- to long-term, it aims to increase the proportion of high value-added product sales to 58% and expand sales in the North American and European markets, which were about half until last year, to 90%.

The semiconductor materials business will expand through SK Enpulse’s CMP pads, blank mask customer base expansion, and new CMP slurry product lines. At the same time, the portfolio restructuring of the semiconductor materials business will accelerate. SKC plans to complete the acquisition of ISC within the third quarter, entering the high-growth post-process core consumables business and expanding its customer base to include global fabless companies and OSAT (Outsourced Semiconductor Assembly and Test) firms. Additionally, SKC plans to complete the Absolix plant in Georgia, USA, within the year, finalizing preparations for the commercialization of semiconductor glass substrates for high-performance computing.

The chemical business, centered on SK PIC Global and SK PU Core, is laying the foundation for a performance rebound despite the still sluggish global market conditions. SK PIC Global will increase its global logistics posts to eight in the second half to expand sales of propylene glycol (PG). Through this, it plans to establish itself as a stable supplier in high value-added markets such as North America and Europe. SK PU Core’s polyol business will focus on expanding sales of products like construction repair materials, where demand is expected to be strong.

The core future growth engine, the silicon anode material business, is also rapidly advancing commercialization. In June this year, SKC completed the establishment of a subsidiary for the business of coated low-content products and began constructing pilot facilities. SKC plans to start pilot production this year and finalize mass production plans. It is also conducting certification procedures and joint development with multiple customers, targeting application in 2026. Nexeo, a UK-based investee preparing commercialization of porous high-content products, plans to pursue a joint venture in the future.

Following CEO Park Won-cheol’s commitment to "conduct all management activities based on ESG," SKC is continuously strengthening ESG management. This year, SKC received an ‘A’ rating for the first time since participating in evaluations by the global ESG rating agency Morgan Stanley Capital International (MSCI). This reflects consistent ESG management activities amid ongoing business restructuring focused on secondary batteries, semiconductors, and eco-friendly materials.

Additionally, to enhance the expertise of the board of directors, SKC established the Future Strategy Committee and the Outside Director Candidate Recommendation Committee, and significantly expanded the governance charter from 18 articles to 53 articles.

Choi Doo-hwan, SKC CFO, said, "SKC adheres to the principle of prioritizing secured resources for growth investments and is steadily preparing for the improvement of market conditions after the bottom. Please watch SKC’s innovation that achieves sustainable growth through bold business restructuring."

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