A worker at SKC's production line in Cheonan, South Chungcheong Province, examines polyester film material. (SKC)
South Korean chemicals-to-materials firm SKC has inked a deal to sell its polyester film business to Seoul-based private equity firm Hahn & Co. for 1.6 trillion won ($1.27 billion) following a split-off, according to the firm’s regulatory filing Wednesday.
The deal, involving operations in Korea, China and the United States and film processing unit SKC Hi-Tech & Marketing, is anticipated to reach closure before the end of this year, the filing said. All polyethylene film-related businesses will be under the new split-off, except for ones that produce the biodegradable polymer PBAT film.
SKC aims to use the proceeds to concentrate on its transition to being a sustainability-focused advanced materials company, which it has pursued since 2016. SKC supplies copper foil to secondary battery makers and fine ceramics to semiconductor chip makers. It also makes propylene oxide, a base material of propylene glycol used in medicine, food and cosmetics goods.
SKC is Korea’s first company to have commercialized polyester film. Its usage ranges from magnetic strips for videotapes to display panels for smartphones and other consumer electronic goods. Its operations in 2021 recorded 68.9 billion won in operating profit and 1.13 trillion won in revenue, according to the company.
The share price of SKC climbed 1.6 percent Wednesday.