[Asia Economy Reporter Hwang Yoon-joo] SK Geo Centric is strengthening its competitiveness in the materials industry by acquiring the polymer business of a French chemical company.
SK Geo Centric announced on the 3rd that it has completed the acquisition of Arkema's high-performance polymer business in France. Last October, SK Geo Centric announced that it would acquire Arkema's polymer business assets for 335 million euros (approximately 439.2 billion KRW).
High-performance polymers are polymer materials with enhanced functionalities, used in various industries such as packaging, special adhesives for dissimilar materials, automotive, and electrical and electronics, representing high value-added chemical products.
With the completion of this acquisition, SK Geo Centric now owns three production facilities in France, goodwill for four products, technology, personnel, and all business assets of Arkema, securing competitiveness that can contribute to strengthening material technology and expanding the packaging industry in the future.
SK Geo Centric will also be able to accelerate its "Green Growth Strategy," diversifying its portfolio from general chemical products to eco-friendly high value-added chemical products. The plan is to expand its position in the eco-friendly chemical product market based on simultaneous creation of economic and social value, as well as customer expansion.
The packaging market size is expected to grow at an average annual rate of over 6% due to the growth of online shopping and delivery industries, and demand for packaging materials is also expected to steadily increase. The plastic resin market, where the products of the acquired business are used, is projected to grow from 27 billion USD (approximately 33.534 trillion KRW) in 2016 to 35 billion USD (approximately 43.47 trillion KRW) next year.
Through this acquisition, SK Geo Centric has secured world-class high-performance polymer manufacturing technology for the first time among domestic companies, contributing to reducing the overseas dependence of the domestic packaging industry by producing materials independently that had previously relied 100% on imports. Additionally, it plans to expand the global packaging market by using the Asian market, where plastic resin market growth rates are high such as in China, as a foothold.
Meanwhile, the high-performance adhesive materials acquired from Arkema, such as Ethylene Acrylic Acid Copolymer (EA Copolymer), Ethylene Acrylic Acid Terpolymer (EA Terpolymer), Ethylene Vinyl Acetate Copolymer (EVA), and MAH Grafted Polymer (MaH-G), have received approval from the U.S. FDA and are used not only in food packaging materials but also in materials requiring high stability and lightweight properties, such as automotive materials.
The technology is highly difficult, with only a few companies worldwide such as DuPont and Mitsui producing these materials. Since existing global manufacturers do not provide licenses necessary for production, domestic companies have had to rely entirely on imports for over 4,000 tons annually.
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