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SKC reaches KRW 1 trillion in sales for Q1 this year for the first time in history
KRW 1.12 trillion in sales and KRW 133.0
billion in operating income for Q1 2022 ... 50.5% and 57.6% year-on-year
increase, respectivelyExpanded ESG management ... increased efforts to build a green ecosystem
by launching a game-based
information platform for separate plastic disposal
SKC (President: Woncheol Park) achieved KRW 1.12
trillion in sales and KRW 133.0 billion in operating income for Q1 2022. It is
the first time for SKC’s quarterly sales to exceed KRW 1 trillion. The sales and
operating income increased year-on-year by 50.5% and 57.6%, respectively.
On May 10, SKC announced the above Q1 earnings
report at the Jongno-gu SKC head office in the presence of key executives including
Yongsun Lee (Head of Industry Materials Division), Duhwan Choi (Head of Management
Support Division), Gabryong Choi (Head of ESG Promotion Support Division), President
Jaehong Lee of SK nexilis, President Kidon Won of SK picglobal, President Euijoon
Lim of MCNS and President Jongwoo Kim of SKC solmics. SKC’s earnings report
announcement was also livestreamed on YouTube.
SKC showed growth in all of its business categories
in Q1. SK nexilis, an investment company in copper foil business for
rechargeable batteries recorded KRW 212.5 billion in sales and KRW 24.5 billion
in operating income. In particular, quarterly sales of more than 10,000 tons of
copper was achieved for the first time through customer diversification. SK nexilis
is speeding up to establish a global manufacturing system as construction
started July last year for its factory in Malaysia with an annual production
capacity of 50,000 tons, followed by the construction of its factory in Poland
with the same production capacity which will start in Q2.
The chemical business centered
around SK picglobal recorded KRW 434.8 billion in sales and KRW 86.1 billion in
operating income. Despite bear spread of propylene oxide (PO) products, the
sales increased year-on-year by 86% through efforts to continuously expand the
sales of high value-added propylene glycol (PG) products and effects gained
from business connectivity with MCNS. SK picglobal is further planning to
maintain solid profitability in Q2 by expanding the sales coverage into high
value-added regions including North America and Europe.
The industry materials
business recorded KRW 335.4 billion in sales and KRW 28.0 billion in operating
income. The operating income almost doubled on a year-on-year basis as the
sales of high value-added products for advanced IT and display increased while
at the same time eco-friendly materials such as Eco-Label, thermo-shrinkable
packaging material, were sold more than the previous year. It is planned for Q2
to further focus on eco-friendly and high value-added products so as to be
responsive to market volatility including soaring prices of raw materials.
The
semiconductor materials business driven by SKC solmics recorded KRW 132.9
billion in sales and KRW 4.9 billion in operating income. In particular,
improved profitability was attributed to increased CMP pad sales. A
certification accreditation is planned for Q2 through maintaining the solid
growth of CPM pads and expanding its client base. Following the process advancement
of an SKC solmics client, high value-added products are expected to account for
a greater portion in the ceramic parts.
SKC is also going extra miles to strengthen the ESG
management in addition to sales expansion and profitability improvement. SK nexilis
has successfully secured an investment of KRW 500 billion for business
expansion in Europe based on the financial agreement concluded between SKC and
Korea Development Bank last year. SKC copper foil business was recognized for its
eco-friendly business management as this transaction received the highest
rating (GL1) in debt-related ESG certification from the Korea Investors
Service.
On April 22, in celebration of Earth Day, SKC
released a game-type smartphone application called My Green Place which is the
first of its kind in South Korea. My Green Place offers information for users as
to how they can properly separate plastic waste in day-to-day life. In addition,
an extended operation will be sought for the new materials technology-based open
platform that has been running since 2017 in collaboration with various special
agencies with an aim to facilitate commercialization of startups, venture companies
and SMEs.
Efforts have been made for corporate governance as well.
While ESG Committee and Related Party Transactions Committee were newly established
last year for the Board of Directors to assume expanded roles, SKC appointed an
outside director as the Board of Directors Chair for the first time in March this
year which would further contribute to increased independence of the Board. Furthermore,
the diversity of the Board was also enhanced by having a female outside
director appointed as the Head Commissioner of the Related Party Transactions
Committee.
An SKC executive said, “The first quarter this year
has been successful across all business areas with the all-time high quarterly
sales over 1 trillion Korean won. This was added with expanded ESG management outcomes
by building a platform which invites the end customers to be engaged in an eco-friendly
plastic ecosystem,” and added, “The Company will continue its business model
innovations oriented towards a ‘Global ESG materials solution’ provider.” [End]
2022-05-10
SKC records all-time high annual sales and operating profit in 2021
Sales
of KRW 3.39 trillion and operating profit of KRW 464.5 billion in 2021, increasing
38% and 130%, respectively, compared to the previous year; the highest in
historyLeaping
forward as a global ESG materials solution company...operating profit of KRW
450-500 billion targeted for 2022
SKC
recorded an all-time high performance in 2021 with sales of KRW 3.39 trillion
and operating profit of KRW 464.5 billion. Compared to the previous year, sales
and operating profit increased 38% and 130%, respectively. For 2022, the
company targets KRW 3.8 trillion to 4 trillion in sales and KRW 450 to 500
billion in operating profit by continuing the upward trend in performance.
SKC
announced on February 8 its 2021 business results in the presence of key
executives at the SKC head office in Jongro-gu, Seoul. Just like last year, the
performance announcement was conducted live on YouTube.
SKC
showed growth in all business areas last year by continuously reinventing its
business model. It rapidly implemented the domestic and overseas expansion of its
copper foil business, the world’s largest—for rechargeable battery. It also
started a high value-added, eco-friendly new material business such as
semiconductor glass substrates for high-performance computing, silicon anode
materials for rechargeable batteries, and eco-friendly biodegradable plastics.
Moreover, it secured investment resources such as signing a KRW 1.5 trillion financial
agreement with Korea Development Bank.
SK
Nexilis, an investment company in the copper foil business, recorded sales of
KRW 663.2 billion and operating profit of KRW 79.5 billion last year. Compared
to 2020 as the first year it became part of SKC, sales and operating profit increased
79% and 50%, respectively. Amid the rapid growth of the rechargeable battery
market, the increase in production with the commercialization of Jeongeup
Factory #5 was the key factor. Its performance is expected to increase further
when Factory #6 starts commercial operation this year. The company also plans
to commercialize a Malaysian factory in 2023 and a Polish factory in 2024.
SK
Picglobal, a global joint venture in the chemical business, saw its sales and
operating profit increase 57% and 277%, respectively, compared to the previous
year to KRW 1.102 trillion and KRW 332.2 billion, respectively. Profitability
has significantly improved thanks to a portfolio strengthening strategy
centered on high value-added PG (propylene glycol) in addition to favorable
business conditions. SK Picglobal plans to continue increasing the number of
major customers for high value-added PGs this year.
In
2021, SKC’s industry materials business division recorded sales of KRW 1.13
trillion and operating profit of KRW 69 billion. Despite the rising raw
material prices and one-off expenses, both sales and operating profit increased
compared to the previous year. Amid continued solid demand such as the trend of
larger displays this year, it will spur the reinforcement of the eco-friendly
materials sector by launching the new biodegradable LIMEX material business in full
scale and expanding the use of biodegradable PLA packaging materials.
The
semiconductor materials business, centered on SKC Solmics, recorded sales of
KRW 484.6 billion and operating profit of KRW 22.1 billion, achieving
additional growth after turnaround to profit last year. In particular, the
company has posted record-breaking sales every quarter since the second quarter
of last year thanks to the start of commercial operation of the CMP pad factory
in Cheonan, securing growth momentum and solid demand for ceramic parts. The
company plans to increase the number of CMP pad customers and continue growing
through the commercialization of blank masks this year.
SKC
recorded good results in ESG management and financial performance last year.
The MSCI ESG grade was upgraded from B in the previous year to BB last year,
and the KCGS overall grade was upgraded from B+ to A during the same period. Moreover,
SK Nexilis received UL's “Zero Waste To Landfill (ZWTL)” Gold grade, with SK Picglobal
acquiring the Gold grade in EcoVadis’ “ESG Management Assessment” as
certification by trusted global organizations.
SKC
will reinvent its corporate identity as a “Global ESG materials solution
company” this year. Moreover, it will complete the main commercialization of
ESG business models such as rechargeable batteries, semiconductors, and
eco-friendly materials. To this end, the company plans to accelerate
large-scale investment and global expansion and continue its efforts to secure
capabilities, organizations, and talents befitting a global ESG company.
"Thanks
to the 'deep change' over the past five years, we recorded all-time high sales
and operating profit last year,” an SKC official said. According to this
official, this year will be the first year of implementing ‘Leap & Reap,’
meaning leaping forward to become a global ESG materials solution company and reaping
the results.
Dividend
for 2021 is 1,100 won per share, up 10% from the previous year. “Despite the
difficult external environment, we increased the dividend compared to the
previous year to maintain the basic policy of active return to shareholders,” the
SKC official added.
2022-02-08
SK nexilis Received the Minister of Employment and Labor Award
Recognized
as an ‘outstanding job creator’ through the Minister of Employment and Labor
Award following the designation as one of the ‘Best Companies to Work for’ A
95% increase in the number of employees over four years along with steadily improved
work-life balance to achieve ‘the production of the world’s best copper foil by
happier employees’
SKC's copper foil
subsidiary, SK nexilis, received the Minister of Employment and Labor Award in
recognition of its significant increase in quality jobs and its improvement in
‘work-life balance’
On the 23rd,
SK nexilis received an award from the Minister of Employment and Labor for its
contribution to job creation. Launched in 2009, the annual award is the Korean
government’s recognition of a leading role played by organizations and
individuals in the creation of quality jobs during the year. SK nexilis is officially
recognized as an outstanding job creator through the minister’s award following
its designation as one of the ‘Best Companies to Work for’ by the Ministry of
Employment and Labor and the Presidential Committee on Jobs in July.
As of June 2021, the
number of SK nexilis employees stood at 432, a 62% increase in two years and a 95%
spike from four years ago. The proportion of people under the age of 34
increased from 34% in 2019 to 42% in 2021. Most notably, SK nexilis has made a
large-scale transition of non-regular workers to regular workers. The company
has surpassed the 10% mark in the number of status-transferred employees
between 2017 and 2021.
SK nexilis has
also improved its job quality. Following the SKC’s acquisition, the company
changed the three-shift system to a four-shift system, creating additional jobs.
In January 2021, it began to implement the flexible working system and the
PC-off system to further improve its working conditions and work-life balance.
An SK nexilis official
said, “The company will join forces with its employees to achieve its goal of
growing into the world’s No. 1 copper foil manufacturer based on its top-tier
copper foil manufacturing technology for EV batteries,” stressing, “We will
create a positive work environment where we can keep our employees happy about
their production of the world’s best products while the company can contribute
to the continuous development of the mobility industry.”
2021-12-23
SKC accelerates BM innovation through 1.5 trillion won financial cooperation with KDB
Signed
an agreement on ‘Industrial and Financial Cooperation Program to Foster
Rechargeable Batteries and Eco-Friendly Materials’ and secured stable
investment resourcesTo
continue efforts to secure optimal growth sources such as maintaining financial
stability in accordance with the September Financial Story guidelines
SKC (CEO Lee
Wan-jae) is raising 1.5 trillion won from Korea Development Bank (Chairman &
CEO Lee Dong-gull) to develop rechargeable batteries and eco-friendly
materials. SKC, which has secured stable investment resources through this
agreement, plans to continue adding growth resources in an optimal form
according to the guidelines in the Financial Story.
On the afternoon
of the 24th, SKC and Korea Development Bank (KDB) signed the “Agreement on the
Industrial and Financial Cooperation Program to Foster the Rechargeable Battery
and Eco-friendly Materials Industry” at the SK nexilis Jeongeup plant in
Jeongeup-si, Jeollabuk-do, Korea. In accordance with the agreement, KDB will
provide SKC with mid- to long-term financial support worth 1.5 trillion won in
relation to the company’s research, development, and investment in rechargeable
batteries and eco-friendly materials over the next five years.
The signing
ceremony was attended by key executives of SKC and Korea Development Bank,
including SKC President Lee Wan-jae and Korea Development Bank Chairman &
CEO Lee Dong-gull. Since 2019, KDB has been conducting an industrial/financial
cooperation program to help representative companies in each core industry,
through mid-to-long-term financial cooperation, to reorganize
themselves into future-oriented high-tech corporations while strengthening
their industrial competitiveness. The bank has so far concluded a total of five
industrial and financial cooperation agreements including
an agreement with SK hynix.
Through financial
cooperation with KDB, SKC has secured growth resources necessary for business
model innovation centered on mobility and eco-friendly materials. Unveiling its
future growth strategy ‘Financial Story’ at ‘SKC Investor Day’ in September,
SKC announced that it needed about 5 trillion won in growth resources over the
next five years. SKC made it clear that to that end, it would actively utilize
strategic financing such as policy finance and business joint ventures on top
of its own internal cash generation efforts to maintain its financial stability.
SKC plans to spur
global investment in rechargeable batteries and eco-friendly materials based on
the large-scale growth investment resources secured through the financial
cooperation agreement. SKC is planning
to increase its annual production capacity to 250,000 tons and emerge as the
world’s largest copper foil producer by investing in the additional production
of 100,000 tons by 2025 on top of its recently decided investment in Stalowa Wola,
Poland to produce 50,000 tons of copper foil used for rechargeable batteries a
year.
For the Malaysian
copper foil investment whose construction kicked off in July, SKC has already
secured about 85% of the total required amount. In addition, SKC is actively
promoting the business of silicon anode materials for rechargeable batteries, high-performance
low-power semiconductor glass substrates, and eco-friendly biodegradable
materials, through various forms of partnership with other companies including
joint ventures. By adding financial cooperation with KDB, SKC plans to further
accelerate the realization of its Financial Story.
"Amid the
intensifying global competition, mutual cooperation with state-run financial
institutions has enabled us to make timely and stable investments," An SKC
official said. “We will shift our business to high value-added materials by
expanding the production of rechargeable batteries and eco-friendly materials
and boosting our technological prowess, and will contribute to Korea’s carbon
neutrality by achieving the goal of ‘Net Zero GHG Emissions by 2040’.”
"This investment
agreement with KDB has great significance in that it has clarified to a large
extent SKC's plan to raise funds for business growth," An SKC official
also said. “SKC will continue to pursue various measures to secure necessary
funds for growth while maintaining financial stability as stated in the
Financial Story.”
[On the afternoon
of the 24th, SKC and Korea Development Bank signed an agreement on the “Industrial
and Financial Cooperation Program to Foster the Rechargeable Battery and
Eco-Friendly Materials Industry’ at the SK nexilis Jeongeup plant in
Jeongeup-si, Jeollabuk-do. SKC CEO Lee Wan-jae (left) and KDB Chairman &
CEO Lee Dong-gull (right) are posing after signing the agreement.]
2021-11-24
SK nexilis CEO Kim Young-tae awarded the Gold Tower Order of Industrial Service Merit
In
recognition of his leadership in SK nexilis' development of the world's best
copper foil manufacturing technology... the highest order of industrial service
merit in Korea Manufacturing
technology for ‘the world’s thinnest, widest and longest copper foil’… selected
as one of ‘the National R&D Excellence 100’ too
Kim Young-tae, CEO
of SK nexilis, a subsidiary specializing in the copper foil business for
rechargeable batteries of SKC (CEO Lee Wan-jae), received the
Gold Tower Order of Industrial Service Merit for
his contribution to leading SK nexilis' development of the world's best copper
foil manufacturing technology at the opening ceremony of the '2021 Korea
Industrial Technology R&D Exhibition' held at COEX on the 17th.
The Gold Tower Order of Industrial Service Merit is the highest among the
medals awarded to persons of merit in national industrial development.
This award
recognizes the manufacturing technology developed by SK nexilis to produce the
world's thinnest, widest, and longest copper foil products. SK nexilis
succeeded in mass-producing copper foil with a thickness of 6 micrometers (μm)
for the first time in the world in 2013, followed by 5 μm in 2017 and 4 μm in
2019. The thinner the copper foil, the better performance and lighter weight of
the battery.
SK nexilis can
produce such thin copper foil with a width of 1,400 mm and a length of up to 77
km. The lager width of copper foil ramps up customers’ hourly battery output
and their productivity while longer lengths reduce their losses caused by roll
replacement, leading to their cost savings. SK nexilis currently has unrivaled
technological prowess to produce 77km for 6㎛ products, 50km for 5㎛
products, and 30km for 4㎛
products, all with a large width.
SK nexilis has
also developed its own additive recipe technology. To produce thin, wide and
long copper foil, the company needs to have sophisticated techniques that can prevent
the tearing, wrinkles, etc. of the product. With its own recipes using various
additives, SK nexilis can control major physical properties such as surface
shape and quality as well as tensile strength and elongation of the copper
foil. This
raises the performance and
reliability of the
product as well as customers’
manufacturing productivity. SK
nexilis' copper foil manufacturing technology is evaluated to be significantly
ahead of its competitors.
SK nexilis'
ultra-thin, wide, and long-length production technology was also selected as
one of the '2021 National R&D Excellence 100' by the Ministry of Science
and ICT earlier this month. Kim Young-tae, CEO of SK nexilis, said, “This award
is a result of the hard work and enthusiasm of all SK nexilis members, and an
external recognition of SK nexilis’ world-class copper foil manufacturing
technology,” pledging, “We will continue to do our best to increase the value
of stakeholders including customers and contribute to the development of the
Korean materials industry and battery industry.”
[SK nexilis CEO
Kim Young-tae (right) poses with Na Seung-sik, standing member of the Trade
Committee of the Ministry of Trade, Industry and Energy, after receiving the
Gold Tower Order of Industrial Service Merit at the '2021 Korea Technology
Awards Ceremony' held on the 17th.]
2021-11-17
SKC achieved record-high operating profit for 2 consecutive quarters
KRW
886.8 billion in sales and KRW 145.8 billion in operating profit, up 32.8% and
139.1%, respectively, YoY in 3Q 2021Record-high
operating profit for two consecutive quarters, with the 2nd Deep
Change starting out strong Reinforcing
ESG management, including the establishment of a virtuous cycle of ecosystem
for plastics, with its ESG rating by Korea Corporate Governance Service rising
to grade A (comprehensive)
SKC (CEO Lee
Wan-jae) earned KRW 886.8 billion in sales and KRW 145.8 billion in operating
profit during the third quarter, recording the highest quarterly operating
profit during the quarter as it did for the second quarter of the year.
Compared to the same period last year, sales increased 32.8% and operating
profit increased by 139.1%.
On November 1st,
SKC announced its 3Q performance results in the presence of key executives
including Lee Yong-sun, head of industry materials division, Won Ki-don, CEO of
SK picglobal; Kim Young-tae, CEO of SK nexilis; and Oh Jun-rok, CEO of SKC
solmics at the SKC headquarters in Jongno-gu, Seoul. SKC broadcast the
performance announcement live on YouTube.
In the third
quarter, SKC saw even earnings growth in all its business divisions: SK nexilis,
a subsidiary in the copper foil business for rechargeable batteries, recorded
sales of KRW 175.3 billion and operating profit of KRW 23.5 billion as a result
of significant growth both in sales and operating profit compared to the
previous year despite some sales delays due to global logistics issues. SK
nexilis plans to secure an annual production system of 520,000 tons by
completing the 6th factory in the fourth quarter following the completion of
the 5th factory which has been operating in full since June.
SK picglobal, a
subsidiary in the chemical business, achieved sales of KRW 286.4 billion and
operating profit of KRW 93.8 billion, continuing quite an impressive
performance for two consecutive quarters, thanks to the increase in the
proportion of high value-added PGs in its product portfolio that the company
has steadily promoted since 2020. In the fourth quarter, we will continue to
increase earnings by promoting customer diversification centered on large
customers who place importance on supply stability while optimizing our global
logistics bases.
The industry
materials business division recorded sales of KRW 303.4 billion and operating
profit of KRW 31 billion by achieving sales expansion and profitability
improvement at the same time through not only overall demand growth but also a
portfolio improvement focused on high value-added products. Most notably, the
company started to create a global ecosystem for eco-friendly materials by
promoting the biodegradable LIMEX business, a new material made by mixing stone
powder (limestone) and biodegradable materials. In the fourth quarter, it plans
to focus on high value-added products to maintain profitability.
The semiconductor
materials business, centered on SKC solmics, continued its growth, recording
KRW 120.1 billion in sales and KRW 7.6 billion in operating profit: A robust
demand for process ceramic parts continued; The CMP pad Cheonan plant started
commercial operation, enabling the company to secure new growth momentum. In
the fourth quarter, the company plans to start expanding production facilities
for ceramic parts and to certify new CMP pad customers in line with the growing
demand.
Following such
trends of earnings improvement, SKC is accelerating improvements in its ESG
management. Declaring 2021 as the first year of ESG management, we started to
build a virtuous cycle ecosystem for plastics through the full-force promotion
of the waste plastic pyrolysis oil business and the new eco-friendly
biodegradable material business. We also continued acquiring ESG management
certifications, such as the highest grade of ESG financial certification (SKC,
SK nexilis) and zero waste landfill certification (SK nexilis). Most notably,
the Korea Governance Research Institute (KCGS) raised SKC’s ESG rating for 2021
to Grade A (comprehensive) last week.
An SKC official
said, “SKC’s 2nd deep change is accelerating as the economic value of the
largest quarterly operating profit in history is added to the company’s
foundation of intense ESG management efforts,” adding “We will spur more
efforts to become a global top-tier mobility materials and parts company that
dreams of a sustainable society.”
2021-11-01
SKC Posted Record-high Q2 Operating Profit
● Q2
sales of KRW 827.2 billion and operating profit of KRW 135 billion, a surge of
44.6% and 169.5% YoY, respectively● 1H2021
operating profit of KRW 219.4 billion tops the total operating profit of 2020 ● Declared
the ESG vision ‘Origination for the Next Generation’ enhancing ESG projects
including plastic recycling and biodegradable materials
SKC (CEO Lee Wan-jae) has posted KRW 827.2 billion in
sales and KRW 135 billion in operating profit during the second quarter of
2021, recording the highest quarterly operating profit ever. Compared to the
previous year, sales and operating profit surged by 44.6% and 169.5%,
respectively. SKC also recorded KRW 219.4 billion in operating profit during
the first half of the year, exceeding the total operating profit of 2020 in
just six months.
On the 4th of August, SKC announced the results of its business
performance during the second quarter of 2021 at its headquarters in Jongno-gu,
Seoul, with key executives attending, including Lee Yong-sun, head of
Industrial Materials Division, Won Ki-don, CEO of SK picglobal, Kim Young-tae,
CEO of SK nexilis, and Oh Jun-rok, CEO of SKC solmics. SKC broadcast the
earnings announcement live on YouTube this time, too.
Q2 earnings increased in all business segments. SK
nexilis, a subsidiary specializing in the copper foil business for rechargeable
batteries, recorded sales of KRW 157.6 billion and operating profit of KRW 18.8
billion. The company continued its full line operation system and achieved
better results than in the first quarter. Most notably, thanks to the earlier
kickoff of the fifth factory in Jeongeup, the company increased its quarterly
production capacity by more than 10,000 tons sooner than planned. SK Nexilis is
getting ready to accelerate the completion of its sixth factory to secure an
annual production capacity of 52,000 tons while spurring its overseas expansion
efforts.
SK picglobal, a joint venture in the chemical business,
recorded sales of KRW 279.6 billion and operating profit of KRW 93.1 billion.
The company’s proportion of high value-added PG sales soared as a result of its
earnest efforts throughout 2020 to shift focus to a high value-added
PG-centered product portfolio and a reliable global customer base. The company
is planning to continue its efforts to strengthen its PG-centered portfolio in
the third quarter when strong demand is expected to continue growing while
seeking to improve its supply stability by securing key global transport hubs.
SKC’s Industrial Materials Division recorded sales of KRW
273.9 billion and operating profit of KRW 25.9 billion. Despite rising raw
materials prices, both sales and operating profit rose largely because demand
increased for high value-added products. Notably, the operating profit margin
jumped by 9.5% over the first quarter. In the third quarter, the company will
respond to raw material price volatility by expanding its sales of high
value-added products while accelerating its efforts to grow its eco-friendly
biodegradable material business through collaboration with overseas unicorn
companies, among others.
SKC’s semiconductor materials business led by SKC solmics
recorded sales of KRW 112.8 billion and operating profit of KRW 7.8 billion,
indicating a growth trend line. As customers continued expanding their
production facilities, the company’s sales of ceramic parts increased
significantly. During the third quarter, the company is planning to maintain
its growth momentum with the start of commercial run of the new CMP pad factory
in Cheonan. Most notably, the company is going to consider further expanding
its production lines to meet the increasing demand for ceramic parts.
On top of its improving business performance, SKC is
spurring its ESG management efforts. The corporation declared 2021 the first
year of its ESG management. In its sustainability report published in July
2021, SKC presented its ambitious ESG goals such as ‘2030 Plastic Net Zero’ and
‘2040 GHG Net Zero. To this end, the company signed an MOU in June 2021 with a
Japanese startup equipped with unrivaled technology needed to commercialize
pyrolysis oil obtained from waste plastics and disclosed its specific plans to
expand its biodegradable materials business.
“In the second
quarter of this year, we not only achieved record-breaking performance, but
also laid the foundation for ESG management to achieve our plastic net zero and
GHG net zero goals in time. We will accelerate our efforts to innovate our
business models while implementing our ESG commitments more swiftly as a way to
contribute to creating a sustainable society and a sustainable future for all.”
said an official from SKC.
2021-08-04
SKC posts best result ever in operating profits in 1Q, since adoption of IFRS in 2012
Posting 784.6 bn won in 1Q sales/81.8 bn won in
operating profits, a 23.6% and 175.4% y-o-y increase, respectivelyKeeping an upward trend as a result of
innovation of BM over years, despite it being offseason The Company strengthens its ESG management through
operation of Financial Advisory Board and innovation of governance structure
SKC (President: Lee Wan-jae) posted 784.6
billion won in sales and 81.8 billion won in operating profits in the first
quarter of the year. The operating profits increased by 175.4% y-o-y on the
strength of improvement in results in the chemical business and growth in
mobility materials. The amount of 81.8 billion won in operating profits is a
record quarterly figure, following its adoption of the IFRS (International Financial Reporting Standards) in 2012.
SKC announced its management results for the
first quarter of the year at a session held at its HQ building in Jongno-Gu,
Seoul on April 30 with the following executive officers in attendance: Mr. Lee
Yong-seon, Head of the SKC Industrial Materials Division; President Won Gi-don
of SK picglobal; President Kim Yeong-tae of SK nexilis; and President Oh Jun-rok
of SKC solmics. The session was relay-broadcasted live through YouTube, as it
was last year.
Despite it being an offseason, the Company
posted drastic growth, supposedly as a result of innovation of its business
model over the past few years and continued the upward trend. As for SK nexilis,
investing in copper foil for secondary batteries posted 142.0 billion won in
sales and 16.7 billion won in operating profits. Its facilities are operating
at full capacity, in step with the growth of the global market for EVs, and it
posted a record figure in sales in the first quarter of the year. It plans to
enhance its results through earlier completion of the work for its 5th
factory in Jeongeup in the second quarter.
Turning to SK picglobal, a joint venture
specializing in chemical business posted 234.1 billion won in sales and 56.0 billion
won in operating profits. It posted a good result on the strength of conversion
to a high value-added PG-centered portfolio amid the COVID-19 situation and
customer businesses’ trust in the stability in supply and product quality.
Enhancement of productivity, through periodic repair done last year, focused on
the optimization of production processes was another factor for the good result.
It is expected that it will post an even better result in the second quarter,
amid the global economic recovery.
In the Industrial Materials sector, the Company
posted 260.3 billion won in sales and 14.8 billion won in operating profits. The
operating profits increased by 21% y-o-y, thanks to an increase in the demand
for films with high added value, amid the introduction of new models in IT and
mobile early this year, despite a rise in raw material prices. The Company
plans to expand the share of materials with high added value, including eco-friendly
products, in the second quarter. It plans to increase the supply of eco-friendly
PLA biodegradable packing materials, in cooperation with new customer
businesses, such as CJ Cheil Jedang and SPC Group.
In the Semiconductor Materials sector, the
Company posted 106.2 billion won in sales and 3.9 billion won in operating
profits. The increases in both sales and operating profits were on the back of
full operation of sales of CMP pad, used for highly particular work processes,
and an increase in sales of ceramic parts. The Company expects to accelerate
its growth and enhance its profitability through the commencement of commercial
operations of the Cheonan factory for CMP pad in the second quarter and
completion of the work for the cleaning factory in China in July.
SKC will strengthen its ESG management, in
addition to the improvement in results. The Company was announced this year as being
the first year for its ESG management, and in March, disclosed a plan for
innovation of its governance structure beyond the global level. It plans to
launch the ESG/Personnel/Insider Trading Committees in its Board of Directors
(“BoD”) and replace the chairs for all the BoD committees, including the Audit
Committee, with external directors. The BoD committees are scheduled to start
their activities in May.
One noteworthy thing is that the Company is
launching the Financial Advisory Board in May as part of its
shareholder-friendly policy. The aforementioned Board will focus on enhancement
of the Company’s corporate values, with the participation of the following
outside experts: Mr. Lee Won-gi, former President of KB Asset Management; Mr.
Lee Chae-won, former President of Korea Investment Value Asset Management; and
Mr. Lee Nam-u, former General Manager in charge of customer management of the
Asia-Pacific Regional HQ of Merrill Lynch, etc.
Commenting on the matter, an SKC official said, “We
expect to post another good result in the second quarter, in addition to the
record result obtained in the first quarter, which we attribute to the
innovation of our business model that we have steadfastly promoted. We will
solidify the groundwork for sustainable growth through the strengthening of ESG
management this year.”
2021-04-30
SKC posts 190.8 bn won, a 36.5% y-o-y increase in operating profits in ‘20
● Posting an
increase in both sales and operating profits, through innovation of the business
model, despite the pandemi● Expecting to
post 250 – 300 bn won in operating profits in ’21 ··· to make it the first year
of ESG management, based on RE100
In 2020, SKC (President Lee Wan-jae) posted
2,702.2 billion won and 190.8 billion won in sales and operating profits, which
is a 14.5% and 36.5% y-o-y increase respectively, in the face of a difficult
situation, caused by COVID-19. Specifically, it accomplished a feat of posting
profits in all business sectors. It set up a plan for posting operating profits
of between 250 – 300 billion won in 2021 and for expanding ESG (environmental, social,
and governance)
activities, setting the year as the first year of ESG management.
SKC announced these management results of
2020 at a session held at its headquarters in Jongno-gu, Seoul on February 9. The
session was broadcasted live through YouTube, as it was the previous year.
In 2020, the company accomplished one
business model innovation after another. In January, it transformed itself into
a business that specializes in secondary batteries, by making a foray into a copper
foil. In February, it split off the chemical business, laying the basis for
worldwide growth. It sold off its equity shares in SKC Kolon PI and SK Bioland,
whose business model (BM) innovation synergy is not high. In December, it
incorporated SKC solmics as a wholly-owned subsidiary, and it integrated
semiconductor-related businesses into one, thus laying the basis for accelerated
growth.
As a result of BM innovation, SKC posted
profits in business sectors. SK nexilis, the company’s wholly-owned subsidiary that
specializes in copper foil for EV batteries, posted 371.1 billion won in sales
and 52.9 billion won in operating profits, despite a drop in operations, due to
a strike early in the year and an unfavorable situation caused by COVID-19. This
good result was obtained on the back of the early commencement of operation of
Factory 4, as well as an increase in sales, following the expansion of the EV
markets in Europe and China. The result will improve further with the start of the
commercial operation of Factory 5. Currently, SK nexilis is in full operation
to make up for the shortage in supply.
As for SK picglobal, a global joint venture
in the chemical business, it posted 699.1 billion won in sales and 88.2 billion
won in operating profits. Its sales and operating profits recorded a slight
decrease, compared to the previous year, due to the periodical overhaul in 4Q,
but it posted a handsome operating profit on the back of a good result in the
sale of PO (propylene oxide) and PG (propylene glycol). It is expected that the
sales of both PO and PG will increase in 2021, on the back of this solid demand.
SK picglobal plans to continue to increase the number of customers for products
with high added value, focusing on individual hygiene.
Looking at the industrial material business
sector, it posted 9,929 billion won in sales and 63.1 billion won in operating
profits in 2020. Its sales posted a modest y-o-y growth, but its operating
profits grew about two-fold. The good result was mainly due to the increase in
the shares of high-quality products, such as a flexible OLED protective film that
differs from competitors, and to the improvement in the performance results on
the part of overseas subsidiaries. In 2021, the sector plans to continue to
grow, through the expansion of the tech-savvy, eco-friendly business.
As for the
semiconductor material business sector, it turned a profit, posting 395.3
billion won in sales and 17.4 billion won in operating profits. The improved
result was on the back of an increase in the sales of products with high added
value, such as ceramic parts and CMP pads. The sector expects to post a better
result this year on the back of the super-cycle trend in memory/foundry, and it
expects to see an acceleration of improved profit rates, amid commercialization
of the CMP Pad Factory in Cheonan.
In 2021, we at SKC plan to focus on the
following 4 management guidelines that were designed to enhance our corporate
value: First of all, we will strive to clearly define our corporate identity
(CI), so employees may have a firmer sense of belonging to a business
specializing in materials for secondary batteries. Then, we will push ahead
with the expansion of our business portfolio and the acceleration of the
creation of results. We will also expand our activities, setting the year as
the first year of ESG management. In connection with RE100, the first of its
kind adopted in the country, we will push forward with the business, using oil that was obtained from pyrolysis of refused plastics. Finally, we will upgrade the strength of our
financial story execution, through solid communication with customers,
investors, and markets.
Commenting on the
matter, an SKC official said, “As a result of the strenuous promotion of
business model innovation throughout 2020, we posted a much better result,
compared to the preceding year, despite the unfavorable situation caused by
COVID-19. We expect to post 250 – 300 bn won in operating
profits in ’21 on the back of this solid trend.”
Our divided profit,
which is to be distributed to shareholders this year, will be a thousand won per
share, as it was in the preceding year. The SKC official added, “We are going
through a difficult period, but have decided to pay dividends at a level
similar to the preceding year, in order to return profits to shareholders as
much as possible.”
2021-02-09
In 3Q, SKC posts highest result in post-2015 period∙∙∙723.7 bn won in sales; 55.3 bn won in operating profits
In 3Q, SKC posts highest
result in post-2015 period∙∙∙723.7 bn won in sales; 55.3 bn won in operating
profits
SK nexilis exceeds the 100 bn mark in quarterly
sales for the first time ∙∙∙ SKC’s addition of SK nexilis, as a new growth
engine, proves to be the right decision.All sectors display improvement in results ∙∙∙ striving
for business model innovation phase-2 with a focus on mobility/semiconductor/eco-friendly
SKC (President Lee Wan-jae) posted 723.7 billion
won in sales and 55.3 billion won in operating profits in the 3Q of the year. The
result reflects a y-o-y increase of 44% and an increase of 20% in operating
profits and sales, respectively, and it is the result of the improvement of profitability
in all sectors. Its quarterly operating profit is the highest in the post-2015
period, which apparently is the result of innovative efforts in business
models, amid unfavorable conditions, like COVID-19.
On December 3, SKC announced the management
results of the 3Q of the year at its headquarters building in Jongno-gu, Seoul,
with the following top managers in attendance: Lee Yong-seon, the officer in charge
of general operations; Oh Jun-rok, the Head of the Semiconductor/Communications
Materials Division; Representative Won Ki-don, of SK picglobal; Representative
Kim Young-tae, of SK nexilis; and Lee Jae-hong, the officer in charge of
management support in general. The session was livestreamed on YouTube, as it
was in the session for the 2Q, in consideration of the COVID-19 situation.
The Company displayed improvement in all sectors
in the 3Q. SK nexilis, a business specializing in copper foil for secondary
batteries, in which SKC invests, posted 103.1 billion won in sales and 15.2
billion won in operating profits. It exceeded the 100 billion won mark in sales
for the first time on the back of the operation of Factory 4, in earnest, and
an increase in the sale of EVs in Europe. SK nexilis is expected to see an
increase in its sales in the 4Q as well, on the back of favorable environments,
like an increase in the demand for EVs.
SK picglobal, a joint venture engaging in
chemical business, posted 184.9 billion won in sales and 25.3 billion won in
operating profits. There was an increase in the demand for propylene oxide (PO)
for industrial purposes, on the back of the bullishness of the automotive
sector. The COVID-19 situation led to a high demand for propylene glycol (PG)
for hygiene/health
goods. It is
expected that favorable conditions will continue in the 4Q, including the periodic
repair of facilities by PO manufacturers and an increase in demand for
industrial materials.
The Company’s Industrial Materials Division,
which produces film materials with high added value, continued to record a
growth, posting 273.4 billion won in sales and 16.9 billion won in operating
profits. Under the prevalence of COVID-19, the sales in display film with high
added value for TV sets and laptop computers, increased. Its local corporation
in China posted a record result on the back of the country’s economic recovery.
In the 4Q, the division plans to be prepared for uncertainties, including the
trade conflict between the US and China, and plans to increase sales of goods
with high added value.
With regard to the Semiconductor Materials
Division, it recorded a steady growth, posting 104.3 billion won in sales and 6.3
billion won in operating profits. Ceramic parts and CMP Pad posted an increase, both in sales and operating profits. In the 4Q, the
division will continue to ride the growth wave by commercializing new CMP
Pad/Wet Chemical goods, and completing the work for Factory 2, whose production
capacity has been doubled.
Commenting on the matter, an SKC official said, “In the 3Q of the year,
the result of innovation in business models (BM) was felt and we achieved the
best result since the 3Q of 2015, despite unfavorable conditions like COVID-19.
We will lay the solid groundwork for continued growth through the acceleration
of innovation Phase-2, with a focus on mobility/semiconductor/eco-friendly.”
2020-11-03
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