* SK Global Chemical completes its acquisition of Dow, acquiring all business brand copyright, production facilities, technology, etc.
* With two M&A this year alone, SK Global Chemical is in an excellent position to tackle the packaging material industry.
* CEO Hyung-kun Kim said: “We will continue to acquire core materials and technology through R&D, M&A, and joint ventures.”
SK Global Chemical
has closed the acquisition deal of the Dow’s PVDC (polyvinylidene chloride).*
A subsidiary of SK
Innovation, SK Global Chemical had signed the acquisition agreement with the
Dow on October 11, 2017. After two months of acquisition processes, SK Global
Chemical now has complete ownership of the former Dow businesses, including
Dow’s PVDC brand SARAN™, production facilities in Michigan, USA, production
technologies, and intellectual property.
This acquisition is
the second high-profile M&A completed by SK Global Chemical this year,
creating a firm basis for its ascent to being a major player in the global
high-value packaging material industry.
In early September of 2017, SK Global Chemical had completed its acquisition of
Dow’s EAA (ethylene acrylic acid) business, a type of adhesive copolymer.
acquisition of the PVDC business, SK Global Chemical now has the basic core
materials necessary for the production of multilayer packaging film, from polyethylene,
Nexlene, EAA, and PVDC. This move is a part of SK Global Chemical’s greater
plan to acquire additional core products in other areas, thereby securing its
ascent to the forefront of the global packaging material industry.
automotive, packaging had been the focus of SK Global Chemical last year,
having been designated as the next-generation growth focus area of the company in
the early parts of 2017. The acquisition of the PVDC is the final triumph in
its M&A ventures within the global chemical market, and as such, it is
expected to a further drive toward other upcoming business portfolios.
CEO Hyung-kun Kim
of SK Global Chemical commented: “We will focus our capabilities in acquiring
product lines and technologies pertaining to our next-generation growth focus
area, automotive materials, and high-value packaging materials” and “we will
continue to acquire core materials and technology through R&D, M&A, and
joint ventures to secure our bid toward becoming a top global player in the
SK Innovation had
announced its plan to focus its business on two areas of automotive materials
and packaging, which are widely hailed as promising fields of growth in the chemical
industry, and elevate its subsidiary, SK Global Chemical, to become a global
Top 10 chemical company by 2024 through sustained investments.
With this, SK Innovation underwent a restructuring of its business organization
in August of last year, with the goals of strengthening the focus toward
automotive and packaging materials and dividing the general marketing
departments into two groups: automotive and packaging divisions.