|SK Global Chemical acquires Arkema's functional polyolefins business including three France-based production facilities. / Courtesy of SK Global Chemical|
By Kim Hyun-bin
SK Global Chemical, a chemical affiliate of the nation's energy giant SK Innovation, completed the acquisition of Arkema France SA, a functional polyolefins business, Wednesday. Last October, the Korean company announced plans to acquire the French chemical company for 335 million euros ($375 million) in a bid to boost its packaging business to enhance its presence in the global high value-added packaging market.
Under the deal, SK Global Chemical has obtained the business rights of Arkema's three out of four production facilities, technology and marketing talents.
The company expects to strengthen the technology and expand its packaging industry and their competitiveness.
Functional polyolefins are chemical components widely utilized in diverse industries including the development of electric and non-electric vehicles.
Through the acquisition, SK Global Chemical will obtain technologies to self-produce functional polyolefins, where before the company heavily relied on imports.
The acquisition comes after the company purchased the ethylene acrylic acid (EAA) and polyvinylidene chloride (PVDC) businesses from U.S.-based Dow Chemical in 2017 to expand into North America and build a solid ground for growth in the packaging industry.
The deal will enable SK Global Chemical to secure production and sales networks, technology and marketing talent in Europe as well as a large European client base.
"As we have finished the acquisition of functional polyolefins business not only are we able to speed up implementation of our 'green growth strategy', but also strengthen our competitiveness in the global market," Na Kyung-soo, CEO of SK Global Chemical, said.