"Strengthening Material Competitiveness" BGF Eco Materials Acquires KNW

KNW Acquisition Related Share Purchase Agreement (SPA) Signed
Expanding New Material Business Portfolio and Strengthening Competitiveness

BGF Eco Materials, a materials division affiliate of BGF Group, held a board meeting to acquire KNW, a specialized materials company, and its subsidiary, and announced on the 25th that it has signed a Share Purchase Agreement (SPA). Through this acquisition of KNW, BGF Eco Materials plans to expand its new materials business and strengthen its competitiveness in the materials industry, which has high growth potential in the future.

BGF Eco Materials aims to expand its business from the existing plastic sector, which includes new materials, recycled materials, and bio-materials, to functional materials owned by KNW and specialty gas materials, an area where its subsidiary Fluorin Korea excels.

KNW is a KOSDAQ-listed company that has grown through functional films used in the display industry. It expanded its scale by acquiring the Onsan business division of Solvay Korea, a specialty gas company, which is now Fluorin Korea.

The subsidiary Fluorin Korea previously served as Solvay Group’s Asian production base for fluorine materials. Based on Solvay Group’s experience and technology, it has maintained a track record of over 15 years as a zero-accident workplace.

Fluorin Korea’s main product is an eco-friendly F2 gas used for etching and cleaning processes in semiconductor manufacturing. High-purity F2 gas is a highly efficient specialty gas suitable for ultra-fine semiconductor processes and is also an environmentally friendly gas that does not affect the ozone layer. Due to the high level of technology and strict regulations involved, there is a high entry barrier in the high-purity F2 gas manufacturing business, and Fluorin Korea has established business competitiveness by producing high-purity F2 gas independently.

Meanwhile, in November last year, BGF Eco Materials streamlined management and restructured its governance through the merger of KOPLA, a KOSDAQ-listed engineering plastic compounding company, with the existing BGF Eco Bio. It has built a business portfolio including subsidiaries such as BGF Eco Cycle and BGF Eco Solution. BGF Group plans to secure the materials business as a new growth engine alongside its existing core business, the CU convenience store operated by BGF Retail, thereby laying the foundation for the group’s sustainable growth.