Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
SK Ecoplant incorporates SK Materials Airplus as subsidiary
SK Ecoplant's incinerator in Malaysia / Courtesy of SK Ecoplant
By Lee Min-hyung
SK Ecoplant, SK Group's construction arm, incorporated SK Materials Airplus as its new subsidiary to create synergy for its industrial plant business, the SK affiliates said Monday.
SK Ecoplant issued new shares to exchange them with a 100 percent stake in SK Materials Airplus obtained by SK Inc., which was approved during a shareholders' meeting.
SK Materials Airplus supplies industrial gas to its clients here and abroad. Its key business areas include the production of nitrogen, argon and oxygen, used particularly for the semiconductor industry. The company boasts a stable revenue structure due to the growing demand for such industrial gases. The SK affiliate generated an operating profit of 65.2 billion won ($48.7 million) last year. Its sales also reached 257.2 billion won during the same period.
SK Ecoplant expects the latest incorporation to enhance its financial soundness. The company is also widely forecast to create more synergy in terms of the construction and maintenance of industrial gas plants. Both firms are also capable of widening their client bases by developing new industrial complexes.
SK Ecoplant also completed the incorporation of Essencore, SK Group's memory modules manufacturer unit, on the same day. The company said the incorporation of Essencore will help boost its presence in the global semiconductor value chain.
Demand for memory modules is expected to soar over the next few years amid the rapid rise of artificial intelligence (AI).
"The latest incorporation of SK Materials Airplus and Essencore will help SK Ecoplant to generate more synergy in diverse industries, such as semiconductors, AI and the environment," an SK Ecoplant official said. "On top of that, we will be able to keep improving our fiscal soundness, thereby ensuring our corporate value sustainably."