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.

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SK Chemical to sell biofuel unit to focus on materials and life science