OCI Holdings Co., South Korea’s largest polysilicon manufacturer, is setting its sights on the biopharmaceutical industry as part of a strategic pivot following the collapse of its planned merger with Hanmi Science Co. this March. OCI’s Chairman Lee Woo-hyun announced at a press conference marking the company’s first anniversary that they are exploring acquisition opportunities in the US and investments in Southeast Asia.
OCI is particularly interested in biopharmaceutical companies with robust financial health and an average return on equity (ROE) of 20% or more. “We’ve reviewed a few pharmaceutical companies in the US, aiming for deals in the trillion won range at minimum,” said Lee. The company plans to participate as a strategic investor within a consortium for these acquisitions.
The shift toward biopharmaceuticals is part of OCI’s broader strategy to transform from a petrochemical focus to a major player in the pharmaceutical and biotech sectors, emulating the model of companies like Germany’s Bayer. This strategy includes potentially acquiring a stake in a Southeast Asian biopharmaceutical firm with a market capitalization of around $500 million.
However, OCI will carefully select its investments to ensure they align with the company’s financial health and cash flow considerations. “When investing in a new business, it should create more than 20% ROE and operating profit margin,” Lee added.
Aside from its biopharmaceutical ambitions, OCI continues to strengthen its core business in polysilicon production, crucial for solar panels and semiconductor applications. Last month, the company announced plans to invest up to 2 trillion won ($1.5 billion) in Malaysia to expand its polysilicon manufacturing capacity for solar panels, underscoring its commitment to growth in both its traditional and newly targeted sectors.
