SK Chemicals Inc., a chemical unit of SK Group, said that it has decided to acquire KCF Technologies Co., the world’s top producer of copper foil for lithium-ion batteries, in a bid to diversify its business portfolio.
SK Chemicals said it will buy a 100 percent stake in KCF Technologies, currently owned by Kohlberg Kravis Roberts & Co. (KKR), a U.S-based private equity fund, for 1.2 trillion won (US$1 billion).
“Considering its growth, profitability and market size, we decided to select copper foil, a core material for electric vehicle (EV) batteries, as our new growth engine,” SK Chemicals said in a regulatory filing.
KCF Technologies was the top player in the global cooper foil market in 2018, with a 15 percent share. Its major customers include electric vehicle (EV) battery makers LG Chem Inc., Samsung SDI Co., and Panasonic Corp.
Copper foil is used as the electrode collectors for anodes in EV batteries.
SK Chemicals, whose business area includes producing polyester film as well as materials for semiconductors and cosmetics, said it expects KCF Technologies to be its new growth engine in the rising EV market.
KCF Technologies reportedly generated 300 billion won ($250 million) in sales in 2018, up 36 percent from a year earlier, while its operating profit surged 48 percent on-year to 40 billion won ($34 million).
SK Chemicals said it aims to triple KCF Technologies ’ production capacity by 2022. Last year, SK Chemicals posted sales of 2.7 trillion won ($2.3 billion), up 4.3 percent from a year ago, while its operating profit surged 14.5 percent on-year to 201 billion won ($170 million).
