Choo Hyung-wook, CEO of SK E&S, Appointed as Head
Seeking to Maximize Growth through Synergy among Key Businesses
Also Planning CIC System Organization and Personnel Operation Strategies
SK Innovation and SK E&S have officially launched the 'Integrated Synergy Promotion Team' and embarked on a full-scale move to leap forward as a 'comprehensive energy solution company.' The two companies plan to maximize the competitiveness of the integrated corporation through organic linkage of their businesses.
Chu Hyung-wook, CEO of SK E&S, is presenting the company's business status at the 'SK E&S Corporate Briefing' held on the 7th at the Conrad Hotel in Yeouido, Seoul. Photo by SK E&S
According to industry sources on the 2nd, SK Innovation and SK E&S recently held the first meeting of the Integrated Synergy Promotion Team and began full-scale activities. The head of the promotion team is Chu Hyung-wook, CEO of SK E&S, and key executives and officers from both companies will participate and hold regular meetings.
The promotion team will derive various synergy creation plans between SK Innovation’s oil and battery businesses and SK E&S’s liquefied natural gas (LNG) and renewable energy businesses and organizations, and based on this, will concretize execution plans to secure stable profits and business competitiveness for the merged corporation. Representative examples include developing a power generation model linking energy storage systems (ESS) through SK E&S’s renewable energy power generation and SK Innovation’s battery technology.
Condensate extracted from the Barossa Caldita (CB) gas field in Australia, developed by SK E&S, can be directly secured and utilized by SK Innovation, which is expected to enhance product sales power and operational efficiency. In addition, synergy creation plans are also being reviewed by linking the offshore carbon dioxide storage exploration rights in Australia secured by SK E&S and SK Earthon, an affiliate of SK Innovation.
As the two companies are promoting the merger in the form of a company-in-company (CIC), the promotion team is also expected to prepare measures for stable operation and capability consolidation of the merged corporation under the CIC system, including organization and personnel management and brand policies.
Earlier, SK Innovation held an extraordinary general meeting of shareholders on the 27th of last month and passed the merger plan with SK E&S with an approval rate of 85.75% of attending shareholders. Accordingly, a mega energy company with sales of 88 trillion won and assets of 100 trillion won is expected to be born in November.
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