"We've Hit the Bottom...
Copper Foil and Glass Substrate Sales to Increase"
SKC recorded an operating loss of 276.8 billion KRW on a consolidated basis in 2024. This figure represents a 29.5% decrease compared to the previous year, following an operating loss of 216.3 billion KRW in 2023, marking a significant expansion of losses for the second consecutive year.
On the 11th, SKC announced through a public disclosure that it recorded consolidated sales of 1.7216 trillion KRW and an operating loss of 276.8 billion KRW in 2024. SKC had expected a turnaround to profitability in the second half of last year, but continued industry downturns have led to ongoing poor performance. SKC focuses on the secondary battery, semiconductor, and eco-friendly materials sectors. It is analyzed that the contraction in the secondary battery market and intense global supply competition prevented the company from securing sufficient profitability.
SKC believes that the timing for a turnaround to profitability will have to extend beyond this year. A SKC representative stated during the earnings announcement, "There remains the challenge of overcoming the electric vehicle chasm (a temporary demand slump), and there are risk factors such as the long-term downturn in the chemical industry," adding, "We think it is too early to talk about a performance turnaround this year." However, they added, "We believe last year was the bottom of our performance."
SKC declared that it will focus all efforts this year on strengthening its core competitiveness and establishing new businesses. In particular, it plans to increase sales centered on copper foil and glass substrates. SKC aims to double sales volume by actively expanding its copper foil business targeting major customers in the Greater China region. SK Nexilis, SKC’s investment company in the copper foil business for secondary batteries, is increasing the operating rate of its cost-competitive factory in Malaysia.
While strengthening financial soundness through cost reduction activities, SKC will continue to push forward with the commercialization of its eco-friendly materials business. The biodegradable material (PBAT) production facility with an annual capacity of 70,000 tons, which began construction in Vietnam last year, is scheduled for completion in the second half of this year.
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