Eco-friendly SK Ecoplant Acquires Three Additional Waste Incineration Companies

[Asia Economy Reporter Onyu Lim] SK Ecoplant has accelerated its progress toward becoming Asia's leading eco-friendly company by acquiring three additional waste incineration companies.

On the 1st, SK Ecoplant announced that it signed stock purchase agreements (SPA) to acquire three companies?Dosihwan-gyeong, I-Mediwon, and Green Environmental Technology?following a board resolution. Through this agreement, approximately 200 billion KRW will be invested to acquire all shares (100% stake) held by Korea Investment Private Equity in each company. The final acquisition amount will be confirmed after an adjustment process for the purchase price, and SK Ecoplant plans to secure the acquisition funds using its cash reserves and acquisition financing.

Following its name change, SK Ecoplant has pursued a bolt-on strategy (mergers and acquisitions with similar companies) anchored by environmental facility management (formerly EMC Holdings). In June, it acquired four waste incineration companies: Clenco, Daewon Green Energy, Saehan Environment, and DDS. With the additional acquisition of three more companies this time, SK Ecoplant has solidified its position as the number one domestic operator with a daily incineration capacity of 968 tons (excluding medical waste) for industrial waste, and has risen to second place in the domestic market with a daily medical waste incineration capacity of 139 tons.

In particular, medical waste incineration has high entry barriers due to strict regulations aimed at preventing secondary infections from pathogens. Given the increasing use of medical institutions driven by population aging and rising income levels, this acquisition holds significant future growth potential.

Dosihwan-gyeong is a company specializing in medical waste incineration and steam supply using waste heat, located in Yeoncheon, Gyeonggi Province. It operates two incinerators with a daily processing capacity of 44 tons. Being situated in the metropolitan area, it plays an important role in promptly handling the increased volume of medical waste due to COVID-19.

I-Mediwon, located in Jangheung, Jeollanam-do, is also a medical waste treatment company operating two incinerators with a daily capacity of 59 tons. Including Dosihwan-gyeong and DDS, a medical waste incineration company acquired in June in Chungnam, SK Ecoplant now has a nationwide medical waste treatment network and plans to enhance synergy by linking these facilities.

Green Environmental Technology, based in Cheonan, Chungnam, is an industrial waste incineration company operating one incinerator with a daily capacity of 90 tons. It currently generates additional revenue through a power generation business utilizing waste heat.

With this acquisition, SK Ecoplant aims to contribute to the advancement and modernization of the waste treatment market by actively introducing not only the know-how of the acquired companies but also eco-friendly new technologies as a leading domestic environmental company. Above all, it plans to establish various cooperation models that promote mutual growth with local communities.

SK Ecoplant President Jaehyun Ahn stated, “Through this acquisition, we have secured a high market share in medical waste incineration following industrial waste. Moving forward, we will sincerely connect various innovative technologies to realize a circular economy and continuously promote eco-friendly businesses that coexist with local communities.”