OCI Acquires P&O Chemical to Expand Advanced Materials Portfolio

Acquisition of Entire Joint Stake in POSCO Future M
Strengthening Competitiveness in Semiconductor and Secondary Battery Materials

OCI has decided to acquire the entire stake of the joint venture P&OChemical with POSCO Future M.

OCI announced on the 26th that it held a regular board meeting and approved this agenda. After board approval, OCI signed a stock purchase agreement with POSCO Future M and acquired the entire stake of P&OChemical held by POSCO Future M for approximately 53.7 billion KRW.

P&OChemical is expected to be finally incorporated as a subsidiary of OCI after undergoing a corporate merger review following the signing of the sales contract.

P&OChemical is a joint venture established in July 2020 by OCI and POSCO Future M to produce high value-added materials using steelmaking by-products. OCI holds 49% and POSCO Future M holds 51% of the shares. In 2022, it completed a hydrogen peroxide production facility with an annual capacity of 50,000 tons and produces electronic-grade high-purity hydrogen peroxide used in semiconductor processes. In the second half of 2023, it completed a production plant for high softening point pitch, a coating material for secondary battery anode materials, and is currently in trial operation.

Although P&OChemical is in the early stages of business and its performance is somewhat sluggish, OCI plans to create synergy between businesses based on technology and production capabilities to normalize performance and achieve mid- to long-term growth. In particular, it is expected that product quality and cost competitiveness will improve simultaneously through close linkage with the Iksan plant, which produces high-purity hydrogen peroxide.

Additionally, P&OChemical plans to start full-scale commercial production of high softening point pitch, an essential coating material that enhances the stability and efficiency of secondary battery graphite anode materials, starting next year.

Through the acquisition of P&OChemical, OCI aims to strengthen competitiveness in semiconductor and secondary battery material businesses and actively expand its portfolio in advanced materials business.

Furthermore, OCI and POSCO Future M plan to maintain a close cooperative relationship based on their long-standing partnership. OCI will secure a stable supply of steelmaking by-products, the core raw materials, from the POSCO Group, and P&OChemical will supply high softening point pitch, a coating material for graphite anode materials, to POSCO Future M, creating a win-win synergy between the two companies.

Kim Yushin, CEO of OCI, stated, "OCI will be able to further expand the scope of its advanced materials business, including semiconductor and secondary battery materials. We will actively create synergy with P&OChemical and explore business expansion opportunities in the advanced materials field to grow into a semiconductor and secondary battery materials company."