[Exclusive] Saudi SIIVC Completes Due Diligence on Esconec... Receives Trillions in Investment and Enters Middle East Market

SIIVC Completes On-Site Inspection of Esconec Battery Plant in Early March
Investment Amount Under Negotiation... Expecting Successful Entry into Saudi Arabia
Total of 23 Korean Companies Including Bio to Enter SKIV Complex

Esconec, a KOSDAQ-listed company, is securing investment from Saudi Arabia and is set to officially enter the Middle Eastern market.

According to industry sources on the 19th, it was confirmed that recently Saudi Arabia's 'Saudi International Industrial Village Company (SIIVC)' conducted due diligence on Esconec's business sites. The due diligence was completed in early March, and negotiations are currently underway regarding the final investment amount. Industry insiders say the investment is virtually confirmed. One insider stated, "The investment has already been confirmed, and the due diligence was merely a formal feasibility procedure," adding, "Considering that companies recently inspected by SIIVC have secured investments ranging from several hundred billion won to over one trillion won, we expect an investment execution of more than 200 billion won." Another source said, "It is expected to be at least 200 billion won," and added, "Among the companies that underwent due diligence, some have secured investments exceeding one trillion won."

As part of the Saudi government's 'Vision 2030' project, the 'Saudi-Korea Industrial Village Project (SKIV)' is being promoted within Saudi industrial complexes. SIIVC has been delegated the authority to promote SKIV through an official agreement with the Saudi Royal Commission. 'Vision 2030' is a national project led by Crown Prince Mohammed bin Salman to shift away from an oil-centered economic structure. Since 2016, the Saudi government has identified electric vehicles, renewable energy, and the bio-industry as the next growth engines and has signed MOAs (Memorandums of Agreement) with Korean companies regarding SKIV residency and investment attraction. SIIVC has conducted due diligence on 23 companies over the past two weeks.

Esconec Homepage

Founded in January 2000, Esconec is a semiconductor inspection equipment manufacturer that was listed on the KOSDAQ market in December 2007. In 2009, it absorbed Samyoungconec, spun off its semiconductor inspection equipment manufacturing business, and began manufacturing metal parts for mobile phones. Currently, its business segments are broadly composed of mobile phone metal parts, primary batteries, secondary battery metal parts, and eco-friendly hydrogen sectors. The mobile phone metal parts segment includes components for the Galaxy series, Fold, Flip, and hinges. The eco-friendly hydrogen sector holds core proprietary technology for the Plasma Carbon Conversion Unit (PCCU), which converts greenhouse gases such as carbon dioxide and methane emitted from thermal power plants, water and wastewater treatment plants, and landfills into high value-added synthetic gas. Esconec holds shares and exclusive manufacturing rights of Recarbon USA Inc (RCU), located in Silicon Valley, USA. This sector operates domestically in Hwaseong through the Eco High Tech corporation established in May 2021. The secondary battery metal parts segment successfully developed secondary battery components in 2020 and is currently mass-producing the products.

The primary battery segment is the part that attracted Saudi Arabia's interest. Esconec's primary battery business mainly focuses on Li/SOC12 batteries and operates domestically in Jeongok, Hwaseong through the Arisel corporation established in May 2020.

The funds allocated to SKIV amount to approximately 13 trillion won in the first phase alone. Hydrogen fuel cell company Gaoncell is reportedly securing investment worth about 1.4 trillion won. Domestic in vitro diagnostic medical device specialist Micobiomed has also undergone due diligence and is preparing for investment execution. Bio companies Asta and Ioflow have been subject to due diligence as well. Asta is reportedly negotiating to secure investment between 500 billion and 600 billion won.