Kolon Industries Inc., a leading South Korean chemical materials producer, announced plans to invest 129.6 billion won ($94.2 million) in a new joint venture (JV) with SK Microworks Co. This strategic move is designed to bolster its presence in the industrial film sector, which has been increasingly dominated by Chinese competitors.
The decision involves spinning off Kolon’s polyethylene terephthalate (PET) business to form the JV with SK Microworks, an industrial film producer backed by domestic private equity firm Hahn & Co. Under the agreement, Kolon will acquire an 18% stake in the JV, while SK Microworks will hold the remaining shares. SK Microworks, ranked as the world’s fourth-largest industrial film producer, emerged from Hahn & Co.’s 1.6 trillion won ($1.16 billion) acquisition of SKC Ltd.’s industrial film business in 2022.
The partnership aims to enhance the competitiveness of both companies in the global industrial film market by leveraging their combined technological and industry expertise. Kolon, which has been downsizing its industrial film operations due to weak demand and intense competition, sees this JV as a pivotal step to revitalizing its PET film business.
While shifting focus to its core businesses like aramid and exploring growth in sectors such as hydrogen, secondary batteries, and eco-friendly solutions, Kolon is poised to strengthen its market position through this collaborative effort.
