Electric vehicle battery maker SK On Co. said on Friday it is set to complete a merger with SK Enterm Co., an operator of crude oil storage tanks, on Feb. 1 – a move aimed at bolstering SK On’s financial strength.
The two companies’ combination is expected to enhance their raw material sourcing capability and drive SK On’s turnaround next year.
It is the latest move in SK Group’s restructuring efforts to cope with a prolonged slowdown in EV demand.
In November, SK On absorbed SK Trading International Co. It is now managed as a company within a company under the name SK On Trading International.
The same month, SK Innovation Co. merged with liquefied natural gas supplier SK E&S Co. It was rebranded as SK Innovation E&S, operating as a company within a company.
SK Innovation owns about 90% of SK On.
SK Enterm operates storage tanks and dock facilities for crude oil and petrochemical products. It will be integrated into SK On Trading International’s terminal business division.
In the third quarter of last year, SK On turned to the black with an operating profit of 24.1 billion won ($17 million). That compared to a loss of 460.2 billion won in the preceding three months and a shortfall of 132.2 billion won in the same period the year prior.
SK Trading International and SK Enterm have each generated around 500 billion won in earnings before interest, tax, depreciation and amortization annually.
By Woo-Sub Kim
duter@hankyung.com
Yeonhee Kim edited this article.
