SK Ecoplant Receives Approval for Plant Business Division Spin-off and Merger... Launch of SK Ecoengineering

Park Kyung-il, President of SK Ecoplant, is conducting the extraordinary general meeting of shareholders held on the 13th.

[Asia Economy Reporter Kim Min-young] 'SK Eco Engineering,' a high-tech engineering company specializing in the green energy sector, will be launched in January next year.

SK Eco Plant announced on the 13th that the agenda for the spin-off merger of the plant business division was approved at an extraordinary general meeting held at the Gwanhun Building in Jongno-gu, Seoul.

Accordingly, SK Eco Engineering will be launched in January next year as a specialized engineering company in the green energy sector, including electric vehicle batteries, lithium-ion battery separators (LiBS), and hydrogen. SK Eco Engineering plans to focus its capabilities on strengthening expertise in the green energy sector with high future growth potential such as batteries, LiBS, and hydrogen, and on advancing related technologies. SK Eco Plant intends to accelerate the transition of its business portfolio centered on environment and renewable energy. With the spin-off merger improving financial structure and securing funds, SK Eco Plant plans to continuously pursue mergers and acquisitions (M&A) next year.

Earlier, SK Eco Plant held a board meeting in October and decided on a spin-off merger by physically splitting the plant business division, excluding some areas such as semiconductors and fuel cells, and absorbing it into a newly established subsidiary (100% stake), BLH Engineering. The spin-off merger date is January 17, 2022. Additionally, to secure investment funds for environmental and renewable energy businesses, BLH Engineering will sell 50.01% of its redeemable convertible preferred shares to a consortium of Mirae Asset Securities and Eum Private Equity (PE) for 450 billion KRW.

Park Kyung-il, CEO of SK Eco Plant, said, "With the approval of this spin-off merger, a high-tech engineering company specialized in the green energy sector has newly launched," adding, "We will do our best to strengthen ESG (environment, social, governance) management together with SK Eco Engineering and to achieve our financial story early."