Kolon Industries and SK Microworks Establish Film JV with 18:82 Equity Split...

Strategic Partnership Between Han & Company and SKC Motebusiness Acquisition
Dividing PET Film from Film and Electronic Materials to Contribute Tangible Assets
"Strengthening PET Film... Targeting the Global Industrial Film Market"

Kolon Industries is strengthening its competitiveness in the PET film business through collaboration with SK Micro Works (formerly SKC Future Materials).

On the 9th, Kolon Industries announced that it held a board meeting the previous day and signed a joint venture agreement with Han & Company and SK Micro Works by spinning off the PET film business. In this joint venture, Kolon Industries will hold an 18% stake, while SK Micro Works will hold 82%.

SK Micro Works is a core business of SKC, acquired by the private equity fund (PEF) operator Han & Company in December 2022 for 1.6 trillion KRW, developing and commercializing various film materials.

Kolon One & Only Tower, Gangseo-gu, Seoul [Photo by Kolon Industries]

This joint venture is a strategic partnership aimed at expanding its presence in the global industrial film market by combining the technological capabilities and market experience of both companies. Both parties plan to contribute certain businesses such as industrial films. Kolon Industries will contribute tangible assets such as PET film production facilities in kind.

By separating the PET film business, which has posted losses for two consecutive years, Kolon Industries also expects to improve its business portfolio. Kolon Industries’ Film & Electronic Materials Division recorded a total loss of 157.3 billion KRW in 2022 (86.2 billion KRW) and last year (71.1 billion KRW). While focusing on its existing core businesses such as aramid, Kolon Industries plans to discover new growth engines such as hydrogen, secondary batteries, and eco-friendly solutions.

A Kolon Industries official stated, “We expect a new leap forward in the PET film sector through the strategic partnership with Han & Company,” adding, “We will strengthen our competitiveness in the global market based on the technological capabilities and market experience of both companies.”