As part of its business restructuring efforts, SK Group is planning to integrate SK Inc.’s semiconductor processing and distribution company, Essencore, and its industrial gas company, SK materials airplus, into SK ecoplant’s subsidiaries.
According to industry sources on July 17, SK ecoplant will hold a board meeting on July 18 to approve the integration of Essencore and SK materials airplus.
Essencore, a sub-subsidiary of SK Inc., receives DRAM supplies from SK hynix and processes them into products such as SD cards and USB drives for distribution. With a robust supply chain and sales network, the company has consistently been achieving stable performance. Despite the downturn of the semiconductor industry last year, Essencore reported an operating profit of 59.4 billion won (approximately $43 million).
SK materials airplus, a subsidiary of SK Inc., produces industrial gases used in semiconductor manufacturing and supplies them to SK hynix, among others. Like Essencore, it is considered to have stable performance due to its reliable supply chain.
Some industry insiders speculate that the integration of both Essencore and SK materials airplus, which are considered “lucrative companies” within the group, reflects SK Group’s intent to bolster SK ecoplant’s financial structure in preparation for its IPO.
Various methods are being discussed regarding the integration of Essencore and SK materials airplus. The prevailing view within the industry is to incorporate both companies as subsidiaries of SK ecoplant in order to maximize the potential synergy effects between them.
Industry insiders evaluate that significant synergy effects are expected upon the integration of Essencore and SK materials airplus. SK ecoplant specializes in engineering, procurement, and construction (EPC) services, and integrating SK materials airplus could potentially allow SK ecoplant to expand its business by taking on EPC projects for SK materials airplus. In addition, there are expectations of collaboration opportunities, such as collecting products from SK ecoplant’s electronic waste recycling subsidiary SK tes and Essencore.
