Dongwon Systems Acquires Secondary Battery Can Manufacturer

[Asia Economy Reporter Seungjin Lee] Dongwon Systems, a comprehensive packaging subsidiary of Dongwon Group, announced on the 24th that it has signed a contract to acquire 100% of the shares of MKC, a manufacturer of cans for secondary batteries, for 15.6 billion KRW.

Dongwon Systems, the No. 1 comprehensive packaging company in Korea, expanded its production line for aluminum cathode foil for secondary batteries at its Asan plant located in Asan, Chungnam Province, last November. With this acquisition, the company is accelerating its transformation into an advanced materials company centered on secondary batteries by entering the secondary battery can business.

Secondary battery cans are essential components of secondary batteries that serve as containers for electrolytes and other contents, preventing short circuits and protecting from external environments. Since its establishment in 2002, MKC has specialized in producing cylindrical cans for primary and secondary batteries. In 2005, it independently developed the 18650 standard cylindrical can (18mm diameter, 65mm height) for lithium-ion secondary batteries and has supplied major domestic battery companies such as Samsung SDI and LG ES.

MKC handles all manufacturing processes in-house, from mold design and mold production to press drawing and surface treatment. Through its three own factories, it produces up to 140 million cans annually while maintaining uniform can thickness below 0.3mm. Based on this competitiveness, MKC recorded sales of 10 billion KRW last year.

Dongwon Systems plans to leverage its expertise in producing metal cans for food and beverages to create synergy in the secondary battery can business and play a leading role in the industry through this acquisition.

A Dongwon Systems official stated, “We will establish ourselves as a cutting-edge comprehensive materials company by further entering the secondary battery parts business. Furthermore, based on collaboration with our clients, we plan to actively consider establishing overseas production bases for parts.”