SK Innovation’s electric vehicle battery plant in Seosan, South Korea (Image courtesy of SK Innovation)
SEOUL, Nov. 1 (Korea Bizwire) — The merged entity of South Korean refiner SK Innovation Co. and its affiliate SK E&S Co. officially set sail Friday, becoming the largest private energy company in the Asia-Pacific region, the company said.
The integrated company, named SK Innovation Co., has combined assets of 105 trillion won (US$76 billion) and boasts 88 trillion won in sales, the company said in a statement.
SK Innovation has said the merger will enhance the competitiveness of the energy portfolio by integrating SK Innovation’s oil and battery businesses with SK E&S’ liquefied natural gas (LNG) and renewable energy businesses.
SK Innovation holds an 89.52 percent stake in SK On, the country’s third-largest car battery maker.
The merger is part of restructuring efforts by SK Group, the country’s second-largest conglomerate, amid a prolonged economic slowdown, growing uncertainties in the mainstay petrochemical business and the so-called electric vehicle (EV) chasm.
The global EV market is in a stagnation phase, often referred to as the chasm, which occurs before the widespread adoption of all-electric vehicles.
The integrated entity aims to achieve 20 trillion won in earnings before interest, taxes, depreciation and amortization (EBITDA) in 2030, up from 6 trillion won in 2023, by focusing on growth drivers and profitability.
On the same day, the merger between SK On and SK Trading International Co. was also completed, with SK On’s merger with SK Enterm scheduled for Feb. 1.
(Yonhap)
