SK Ecoplant is in talks to sell its offshore wind power subsidiary SK Ocean Plant to private equity investors for an estimated 500 billion won ($367 million) as part of a broader restructuring effort.
The South Korean company acquired the unit, formerly known as Samkang M&T, in November 2021. SK Ocean Plant specializes in manufacturing substructures for offshore wind turbines, marine plants, and special vessels. Despite SK Ecoplant investing 541.9 billion won in offshore wind power in 2022, the subsidiary has faced challenges, including delays in a 350 billion won wind development project in Taiwan.
These setbacks contributed to SK Ocean Plant’s declining performance, with revenue of 661.9 billion won and operating profit of 41.4 billion won last year, down from previous results.
The divestiture aligns with SK Ecoplant’s strategy to streamline operations and focus on core competencies. The company is also selling other assets, including waste incineration, landfill, and water treatment businesses under its Renewus and Renewon subsidiaries.
According to a private equity representative, potential buyers are being offered incentives to acquire both the environmental businesses and the offshore wind unit in a package deal.
Despite recent challenges, SK Ocean Plant is projected to secure up to 300 billion won in new orders from Europe, separate from its ongoing Taiwanese projects, potentially making it an attractive acquisition target.
