SKCIncl Acquires 100% Stake In KCFTechnologiesCo, The World's Largest Copper Foil Manufacturer

- Nov 22, 2019-

On June 13, SKCInc, a chemical materials company owned by SK Co., Ltd., said that the company has decided to acquire the world's largest copper foil manufacturer from US private equity fund Kohlberg KravisRoberts & Co for 1.2 trillion won (about $1 billion). 100% equity of KCFTechnologiesCo.

In a regulatory filing, SKC wrote: “Considering the profitability and market planning of copper foil (the core material of electric vehicle batteries), we decided to develop and develop this industry.”

In recent years, the world's major car manufacturers have actively developed electric vehicles, so that the demand for lithium batteries for electric vehicles is strong. The monthly capacity of original PCB copper foil is about 6,500 tons, which is transferred to lithium battery copper foil, and the electronic applications for vehicles are increasingly widespread. The demand for servers is strong, and the supply of copper foil industry is expected to continue for one to two years.

KCFTechnologiesCo has a 15% share of the world copper foil market, and its customers include LGChem Inc., Samsung SDI and Panasonic.

At present, SKC's business areas include the production of polyester film, semiconductor and cosmetic materials, and the company expects KCF to become a new motor with expanded performance. It is reported that KCF achieved sales of 300 billion won in the year of 1818, a year-on-year increase of 36%, while its operating profit increased by 48% year-on-year to 40 billion won.

SKC said its goal is to triple KCF capacity by 2022. Last year, SKC announced sales of 2.7 trillion won, a year-on-year increase of 4.3%, while its operating profit increased by 14.5% year-on-year to 20 billion won.