SK On Launches Wholly Owned Battery Plant in Tennessee, USA

SK On Tennessee Plant in the United States. SK On

SK On has completed the restructuring of its battery joint venture 'BlueOval SK' with Ford and has converted its Tennessee plant in the United States into a wholly owned subsidiary. This move is expected to improve the financial structure of the joint venture and enhance the autonomy of its U.S. production base.

On May 21, SK On announced that it has converted the existing BlueOval SK Tennessee plant into 'SK On Tennessee' and has begun operating it independently. With this restructuring, SK On now solely owns and operates the Tennessee plant.

In contrast, the two Kentucky plants previously under BlueOval SK will be owned and operated by Ford.

SK On expects that the termination of the joint venture structure will reduce its debt burden by approximately 5.4 trillion won. Given the current high interest rate environment, this is expected to result in annual interest cost savings of about 180 million dollars (approximately 270 billion won).

The company also anticipates a reduction in the annual depreciation burden of about 330 billion won that was previously associated with the Kentucky plants.

An SK On official stated, "This restructuring of the joint venture system will strengthen our financial structure and improve the efficiency of our production operations in the United States. Based on the newly secured independent production base, we will proactively respond to changes in the North American market."

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