South Korea’s SK Chemical Co. has agreed to sell its biofuel unit to local private equity fund Hahn & Company to put more resources into its eco-friendly materials and life science business.
The Kospi-listed company announced in a Thursday regulatory filing that it signed a contract to sell its entire biodiesel and bio-heavy oil business to Hahn & Company for 380 billion won ($321.1 million).
SK Chemical said it will use the proceeds to strengthen its core businesses including high-performance materials and life science with an aim to achieve more sustainable growth in the future.
SK Chemical has been ramping up R&D efforts and production of its self-developed polycyclohexylenedimethylene terephthalate (PCT), which is often called super engineering plastic for its high-strength and heat-resistance properties. PCT is widely applied to electronics and automotive industries. The company places a high bet on its copolyester PCT, which is free of bisphenol A (BPA), one of several environmental endocrine disruptors.
The company has also been making significant investments in biopharmaceutical business. It developed a dementia treatment patch SID710 in 2010 to offer a novel drug delivery alternative for elderly dementia patients who have difficulty swallowing their medication. The drug was approved by the U.S. Food and Drug Administration (FDA) last November.
SK Chemical to sell biofuel unit to focus on materials and life science