SKC Sells Polyurethane Raw Material Business for 410.3 Billion KRW

Decision to Sell 100% Stake of SK PU Core to Glenwood PE, a Private Equity Firm, on the 12th

SKC is selling its chemical material polyurethane (PU) raw material business. This decision will accelerate SKC's completion of business model innovation focused on secondary batteries, semiconductors, and eco-friendly materials.

On the 12th, SKC held a board meeting and decided to sell 100% of SK PU Core's shares to Glenwood Private Equity (Glenwood PE) for 410.3 billion KRW. The sale includes the optical polyurethane material business of Woori Finechem, which SKC acquired in 2019. SKC plans to complete the transaction within this year after completing the necessary procedures.

SK PU Core, the key investee of SKC's PU raw material business, has been producing polyol, the raw material for PU, for over 30 years since 1991. It has rapidly expanded overseas production bases in the United States, China, Poland, and Mexico, and along with SK PIC Global, has been one of the two pillars of SKC's chemical business. Additionally, by developing Korea's first recycled polyol (Re-Polyol) and bio polyol, it has newly entered the eco-friendly PU raw material business and established itself as a global leader in the PU industry.

SKC's decision to sell the PU raw material business is aimed at completing the business model innovation into a 'global material ESG solution' company centered on secondary batteries, semiconductors, and eco-friendly materials. The PU raw material business requires large-scale additional investments to meet increasing market demand and diverse customer needs. Considering the direction of business model innovation, SKC decided to sell the PU raw material business to a buyer better suited for its growth and development.

Glenwood PE, acquiring SKC's PU raw material business, is a top-tier private equity firm in Korea known for discovering growth engines and strengthening corporate competitiveness through aggressive investments after acquisitions. It is expected that Glenwood PE will secure employment stability for SK PU Core's members and enhance the global competitiveness of the PU raw material business through additional investments.

With the proceeds from this sale, SKC plans to enhance financial stability while expanding investments to respond to global demand, strengthen competitiveness, and expand its secondary battery, semiconductor, and eco-friendly material businesses. SKC is rapidly achieving business model innovation by completing a copper foil factory in Malaysia by the end of this year, deciding on biodegradable material investments in Vietnam, acquiring ISC, and investing in shares of Chipletz, a semiconductor packaging technology company.

An SKC official said, “We will expand our achievements by firmly establishing a global expansion and future growth foundation through a business structure centered on secondary batteries, semiconductors, and eco-friendly materials,” and added, “We will quickly complete business model innovation to leap forward as a global ESG material solution company representing the Republic of Korea.”

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