SK Innovation's merged entity officially launches, setting sail as the largest private energy company in Asia-Pacific
■ Completed the merger process with SK E&S over the past three months, officially launching a merged entity with assets totaling KRW 105 trillion
■ Established a comprehensive portfolio encompassing current and future energy sectors, including oil, chemicals, LNG, power, and batteries
■ Formed an Integration Synergy Task Force and Energy Solutions Business Division to drive synergies and ensure future growth potential
SK Innovation and SK E&S have officially completed their merger, launching a new entity on November 1st. Following the announcement in July, the companies have successfully concluded the preparation process over the last three months, creating the largest private comprehensive energy company in the Asia-Pacific region, with assets totaling KRW 105 trillion as of the first half of this year.
On the same day, SK Innovation's Board of Directors finalized the merger procedures with its subsidiaries, SK On and SK Trading International. The company plans to complete the merger with SK Enterm by February 1st next year.
With this strategic move, SK Innovation aims to establish a robust portfolio that encompasses both current and future energy sectors, including petroleum energy, chemicals, LNG, power, batteries, and renewable energy. The company is set to evolve into a "Total Energy & Solution Company," integrating technologies and capabilities across each portfolio to provide comprehensive energy solutions.
◈ Building a Distinctive and Competitive Portfolio as a Leading Comprehensive Energy Corporation
SK Innovation is earning commendations for its establishment of a distinctive and robust portfolio as a leading global comprehensive energy corporation. The recent merger has strategically positioned SK Innovation to not only enhance its competitiveness in primary energy sectors such as petroleum, gas, and power but also to expand its operations into the energy infrastructure domain, including the burgeoning battery segment.
Typically, global private energy companies with assets exceeding KRW 100 trillion tend to focus on either petroleum or power. However, the newly formed SK Innovation distinguishes itself with a balanced and substantial presence across all three major sectors—petroleum, power, and gas—demonstrating significant market engagement. Industry analysts highlight that this strategic positioning offers a promising future vision and substantial potential for sustainable growth.
To support its evolution into a comprehensive energy enterprise, SK Innovation has optimized its organizational structure. SK E&S will operate under the new name "SK Innovation E&S" as a Company-in-Company (CIC). CIC is a structure that allows business units to operate independently within a larger organization, enhancing agility and innovation while utilizing shared resources. This approach helps preserve the competitive edge of its legacy business operations while fostering synergies with SK Innovation’s existing businesses.
Similarly, SK On will integrate the newly merged SK Trading International under the name "SK On Trading International," also functioning as a CIC. This strategic move aims to bolster the company's competitiveness in securing battery raw materials, enhance financial stability, and further strengthen its core business capabilities.
◈ Establishing New Divisions to Leverage Merger Synergies and Embark on Concrete Business Development
Following the merger announcement in July, SK Innovation has accelerated its efforts to create business synergies by launching the "Integration Synergy Task Force." This task force has identified four core "Quick-Win" business areas—LNG value chain, trading, hydrogen, and renewable energy—and has begun concrete business realization efforts.
The company is currently exploring the establishment of self-generation facilities within the SK Ulsan Complex (CLX) and the direct import of LNG. These initiatives are expected to enhance power production and supply stability while delivering cost savings. Additionally, SK Innovation is advancing a project to directly secure and utilize condensate* extracted from the Barossa Caldita (CB) gas field in Australia, developed by SK Innovation E&S. This initiative aims to strengthen SK Innovation's product sales competitiveness in the international crude oil market and improve operational efficiency.
*Condensate: A volatile liquid hydrocarbon that is produced as a byproduct during natural gas extraction.
Collaboration between the recently established "Energy Solution Business Division" at SK Innovation and the ongoing energy solutions business managed by SK Innovation E&S is also anticipated. The energy solutions business is designed to offer customized solutions for customers, enhancing energy supply stability, cost savings, and carbon reduction. The division focuses on optimizing power supply for SK Group affiliates and providing total energy solutions to AI data centers, among other initiatives. Furthermore, SK Innovation plans to leverage its research and development (R&D) capabilities to continuously expand into businesses such as Small Modular Reactors (SMR) and Energy Storage Systems (ESS).
◈ Creating Greater Value for All Stakeholders and Contributing to the National Economy
SK Innovation expressed gratitude to all stakeholders, including shareholders, customers, partners, government agencies, and the public, who supported the merger that laid the foundation for sustainable growth. As a leading company in the Korean energy industry, SK Innovation reaffirmed its commitment to maximizing shareholder value and contributing to the development of the national economy.
On this occasion, SK Innovation President & CEO Park Sang-kyu sent an email letter to employees, stating, "This merger enables us to establish a balanced energy portfolio and envision greater future growth." He encouraged everyone to "expand our customer base and market presence through business synergies."
CEO Park further called upon everyone, "Let us all, as one team, embody the passion and SUPEX spirit of the SK Management System (SKMS) to collectively build the history of SK Innovation's stability and growth."
Choo Hyeong-wook, President of SK Innovation E&S, also shared his vision for the merged entity, stating, "Through the independent CIC structure, we will maintain the competitiveness of our existing businesses while creating merger synergies to enhance both stability and growth potential." He added, "By combining various energy sources and business and technology capabilities of the merged entity, we aim to provide Energy Solution Packages tailored to customer and regional characteristics and lead innovation in the energy industry."
[Reference] SK Innovation E&S corporate identity
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- SK Innovation and SK E&S announce merger, forming Asia-Pacific's largest private energy company with assets of KRW 100 trillion
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[Energy Tidbits] From liquor casks to the global standard for crude oil – the amazing transformation of the barrel
📌 Energy Tidbits is a series to flavor your knowledge of energy industry with tasty tidbits.
On October 24, 1901, Annie Edson Taylor, a 63-year-old American schoolteacher, climbed into a large oak barrel and plunged over Niagara Falls to mark her birthday. She survived the 53-meter drop from the massive waterfall, becoming the first person in history to do so at Niagara Falls. How did she manage to survive this perilous trip?
Taylor’s survival was credited to the specially designed barrel she used. Ordered from a local beer cask production company, the barrel was 1.4 meters tall and weighed 73 kilograms. It was further reinforced with iron plates and cushioned to absorb the impact. At the time, barrels like these were typically used for storing beer and wine, but their durability, buoyancy, and watertight construction made them ideal for Taylor's journey.
Over time, barrels evolved from simple containers for food and alcohol to essential storage units for crude oil trading and shipment. Consequently, the barrel became a key global volume unit for crude oil trading and transportation. Today, the “barrel” remains the international standard for measuring and transporting crude oil. Let’s explore the fascinating history of how the barrel became synonymous with oil in the international petroleum industry.
| When did oil start being stored in barrels?
Though records of oil trading date back to ancient times, only small volumes were traded, making it difficult to establish a universally recognized or standardized measurement across all countries. However, in August 1859, when Edwin Drake successfully drilled the first oil well in Titusville, Pennsylvania, large-scale commercial production and oil consumption began, dramatically changing the situation.
As drilling volumes increased, the surge in oil production led to a shortage of adequate storage facilities. The mountainous terrain around Titusville further complicated oil transportation. Additionally, with the expansion of oil transportation and trade, it became necessary for oil producers and transporters to standardize the various measurement systems they had been using. In response, oil producers began using wooden barrels, commonly available for storing whiskey, beer, and salt, to transport crude oil down the Allegheny River. This marked the beginning of oil transportation using barrels.
| The barrel, a unit for measuring volume: How many liters are in one barrel?
The barrel not only became a container for storing crude oil but also established itself as the international standard unit for measuring oil volume. One barrel is typically equivalent to 42 gallons, based on the US gallon standard.
1 barrel = 42 gallons ≈ 159 liters
Interestingly, 1 barrel wasn't always set at 42 gallons. As mentioned earlier, barrels were used for storing wine, beer, and other liquors. They had the advantage of being mass-produced and capable of holding large quantities. However, the size varied depending on the type of liquor being stored. At that time, wine was stored in 42-gallon barrels (liquor casks), while whiskey was stored in 40-gallon barrels.
As demand increased and crude oil began being sold in barrels like wine and whiskey, problems began to emerge. The difference in volume between whiskey and wine barrels led to variations in the amount of oil depending on which barrel was used. Additionally, when the oil reached its destination, some would leak or evaporate, causing further issues. Naturally, buyers became dissatisfied and demands grew louder for a standardized amount of oil to ensure uniformity. As a result, oil producers agreed to standardize by using 42-gallon wine barrels to transport crude oil. Furthermore, the 42-gallon barrel was the ideal size and weight for various modes of transportation, such as wagons, trains, and ships, allowing for more efficient use of labor and space.
To ensure efficiency and reliability, the size of the barrel was standardized at 42 gallons. This standard was adopted by the Petroleum Producers Association in 1872. A decade later, in 1882, it was officially recognized by the U.S. Geological Survey and the U.S. Bureau of Mines. Today, with advancements in transportation technology, crude oil is transported via pipelines and steel drums, replacing wooden barrels.
| Why does the unit symbol for barrel, "bbl," have two "b"s?
When looking at the word "barrel," there is only one "b," yet the unit symbol "bbl" contains two "b"s. It might seem like a typographical error, but interestingly, this abbreviation is internationally accepted and widely used.
There are various theories as to the origin of "bbl," but the most famous one is that it comes from Standard Oil, a dominant player in the 19th-century U.S. oil industry, which painted its barrels blue—hence "blue barrel" (bbl). This has become somewhat of a myth in the oil industry. Another theory suggests that the term "bbl." was used long before Standard Oil's blue barrels appeared in records for various goods like honey and whale oil.
There is also a theory that "bbl." was adopted to prevent confusion with other units, helping to avoid mix-ups in unit notation. At the time, "bl" was already used as the abbreviation for "bushel," a unit for measuring agricultural products like grain or fruit (with the U.S. bushel equivalent to about 27.216 kg). To avoid confusion, "bbl" was adopted as the distinct notation for barrels.
| How are other energy sources besides crude oil measured?
In the European Union (EU) or Japan, sometimes the unit of crude oil transactions is liters. This is because these countries have adopted the International System of Units (SI) for their measurements. The SI standardizes units for electric current, temperature, time, length, and mass, etc., according to the metric system*, creating a widely accepted international measurement standard/standard of measurement. However, most international crude oil transactions are currently conducted in U.S. dollars, with the volume measured in barrels - a unit originating from the U.S., which remains the standard measurement for crude oil worldwide.
*Metric system: A decimal-based measurement system using the meter (m) for length, the liter (ℓ) for volume, and the kilogram (kg) for mass as the fundamental units.
Then, what units of measurement are used for energy sources other than crude oil? Coal, which has been used as an energy source for much longer than crude oil, is solid and is measured in tons for ease of trade and transportation. On the other hand, natural gas is measured by volume in cubic meters (m³), which refers to the volume of a cube with sides measuring 1 meter each, meaning that 1 cubic meter (m³) equals 1,000 liters. Liquefied natural gas (LNG), as the name suggests, is a gas in a liquid or fluid state, so it is primarily measured in tons and cubic meters.
In the energy industry, where various units are used, the "barrel" has become a symbolic measure of oil. What started as a simple wooden cask has now become the global standard unit representing the massive oil economy. The barrel now plays an indispensable role in oil transportation and across the entire petroleum industry, including production and manufacturing. The next time you encounter the word "barrel," reflect on its evolution from a simple wooden cask to a global symbol of the vast and intricate oil economy, encapsulating a rich history that continues to shape the petroleum industry today.
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How EVs are becoming the value choice in North America (by James Carter)
"Purchase cost is no longer a major concern for EV buyers in the US"
A few weeks ago, one of my neighbourhood friends here in Toronto was asking for my thoughts on buying a hybrid SUV to replace their decade old minivan.
My immediate response was to suggest considering an EV, though I had assumed it would be significantly more expensive. Wanting to double check, I jumped on the OEM’s websites and compared lease payments. What I found surprised me.
The vehicle they were looking at was a Toyota RAV4 hybrid in mid grade XLE trim, so I chose the Tesla Model Y RWD to do price a comparison. After some adjustments to account for down payment, incentives and lease term length, I was shocked to find that the RAV4 was less than CA$50 per month cheaper than the Tesla. In British Columbia and Quebec, which add local provincial EV incentives, the Tesla was over CA$50 a month cheaper!
Yet the Tesla has more room, more standard features and technology, much better performance, a higher safety rating, and is much cheaper to run and maintain. The value is there, plus it is MUCH cheaper to run.
This comparison is important as these two SUVs are the #1 and #2 top selling (non-pickup) vehicles in North America, which means that many people are doing this calculation.
Some further research found that the business publication Forbes had come to the same conclusion. They found also most half of all EVs sold in the North American market are now cheaper to own than their ICE equivalents.
▲References: CarEdge, Kelly Blue Book
Moreover, JD Power’s recently completed study on EV cost of ownership over a 5-year time frame versus a traditional combustion vehicle had similar results. This study found that in 48 out of 50 US states it made more financial sense to buy an EV versus an equivalent ICE vehicle, sometimes to the tune of more than US$10,000.
That’s huge cash in most buyers’ language.
The first question to ask is how this can be the case. Weren’t EV supposed to be much more expensive?
The answer is that they were, but not now; and there’s five reasons why this is the case.
1) COVID driven inflation
▲Source: Cox Automotive
From the start of 2022 until mid 2023 the average price of a new vehicle rose from US$42,000 to US$50,000. In just 18 months a new vehicle had jumped almost 20%! Much of this was driven by supply chain shortages, which kept supply low, while demand increased due to government COVID recovery money being pushed into the economy. However, remarkably, as interest rates shot up to counter inflation, average new car prices have only seen minor decreases from this high.
Learning: Inflation and interest rates impact the entire automotive industry, EV and ICE alike.
However, as ICE vehicle prices increased across the board, EV prices fell, and there are several reasons for this:
2) Battery and EV component prices continue to fall
In an electric vehicle the battery makes up as much as 20% of the entire vehicle’s build cost. Therefore, cost reductions here can significantly lower total vehicle cost. This is exactly what has been happening as lower commodity prices and newer cost reduction technology, such as LFP cells, are significantly lowering the cost of batteries.
Learning: Falling battery prices are creating the opportunity for lower EV prices
3) Changes to government rebates in the U.S. (Inflation Reduction Act)
▲Source: Bloomberg
In the United States, the US$7,500 incentive to purchase an EV has moved from a tax rebate to an upfront incentive, but at the same time, new restrictions have been placed on which vehicles that incentive applies to.
Essentially, a vehicle must be built in a USMCA free trade country, with batteries and their minerals sourced from countries with a Free Trade Agreement. However, as of today there is an exception: vehicles sold to companies still qualify for the rebate. This allows leasing companies to purchase EVs and apply the US$7,500 rebate for customers as a lease credit, drastically reducing monthly payments. It is now common to see EV lease deals for far less than an ICE vehicle, particularly in states that add further incentives.
Learning: Bargain EV lease deals in the US have as much to do with the government EV incentive structure as OEMs incentives.
4) Demand, Supply, Incentives, and Margins
Over COVID, there was nothing hotter in automotive than EVs. Demand was FAR higher than supply and OEMs had difficulty catching up due to the production expansion needed and COVID supply chain issues. Eventually, production (supply) caught up, right around the same time sales growth (demand) softened due to higher interest rates, creating a more balance inventory situation. On some models, OEMs even had over supply on growing sales, which was rebalanced with additional incentives.
With balanced supply, EVs began to behave like any other vehicle. Sales volumes (demand) are impacted by the competitive product offering, retail offers and overall economic factors; as well as OEMs ability to produce those vehicles (supply). OEMs that have decided to pursue aggressive sales plans, or have a need to clear excess inventory, have added extra incentives, just like they do with ICE and hybrid vehicles.
As an example, Stellantis recently announced emergency measures (i.e. HUGE incentives) to clear excess stock of their ICE RAM trucks and JEEP SUVs in North America, which occurred due to lower-than-expected demand. In other words, OEM demand / supply issues, and the levers they can pull to correct problems, are a normal part of the automotive business, regardless of the drivetrain.
Interestingly, comparing manufacturer’s suggested retail price (MSRP) points and incentives on similar vehicles between Canada and the United States, after currency adjustment, is very revealing. Canada’s MSRP points for EVs are often 15% to 20% LOWER than in the US for the same vehicle (reference: Hyundai IONIQ 5). However, as interest rates climbed, OEM distributors in the US have ramped up retail discounts to significant levels, while Canada’s incentives have been minimal, suggesting that both are using their margins in different ways to suit the market. In other words, the US retail discounts are funded by a fat MSRP margin buffer that doesn’t exist in Canada.
Learning: EV incentives aren’t an “EV chasm,” they’re a normal part of any OEM’s tactical business plan for any vehicle, regardless of whether they are EV or ICE, and in the US these EV incentives are being funded out of fat profit margins.
5) Local manufacturing
To take advantage of the changes in the US Inflation Reduction Act, OEMs have been localizing production of EVs. Full compliance allows for the US$7,500 rebate to also be applied to cash and finance purchases, not available otherwise. One of the biggest has been the new and massive US$7.6 billion Hyundai production facility in Georgia, USA that produces the IONIQ 5 and the Kia EV9. With a capacity of 300,000 units annually, this factory will create 8,500 direct jobs, as well as another 3,500 jobs at the nearby SK On joint venture EV battery cell plant.
Other EVs from non-North American brands with recent new start of production in North America include the Volvo EX90 and Polestar 3, made in Charleston, South Carolina; Volkswagen ID4, made in Chattanooga, Tennessee; and Honda Prologue and Acura ZDX, made in the Ramos Arizpe plant in Mexico.
The combination of these things has resulted in several EVs with over 300 miles of range being available for purchase for UNDER the US average new car price, a key range figure that opens acceptability for most North Americans.
All these factors are adding up to EV sales that are continuing to grow faster than the market. Though down from their record growth rates in 2022 and 2023, Q2 2024 saw EV sales grow at 8% over Q2 2023, compared to 3% for the entire market, according to the data shown in “Q2 2024 Kelly Blue Book EV Sales Report.”
However, one problem does remain, and that is the lack of affordable EVs under US$35,000. While EVs on sale compare very well with their ICE competitors, the lack of vehicles for the value buyer is an issue. This is quite different to markets like Europe and China that offer an assortment of lower cost electric vehicles. This appears to be changing as new models are on the horizon to fill this gap, including the Kia EV3, updated Chevrolet Bolt and a low-cost Ford model.
The stabilizing of prices and supply has resulted in another benefit: a proliferating used EV market. This is important as in North America, four used cars are sold for every one new car. With EVs becoming popular new cars, the number of used electric vehicles available has quickly grown. This newfound supply, plus the new EV tax credit in the US, has allowed lower budget buyers to step into an EV and exploit the operational cost savings at a price that they can afford.
▲Source: iSeeCars
But, is it true that the purchase cost for buyers has become no longer a top concern? According to the most recent Annual Global Mobility Study that Vision Mobility, CuriosityCX and LEK Consulting prepare annually across nine countries and over 3,000 respondents, battery life has replaced purchase cost in the US as the #1 concern for EVs. In fact, purchase cost is no longer even in the top 3 EV concerns!
Yet, while the cost of an EV battery replacement can be expensive, the warranties and technical design means that few new car buyers need to worry. Most EVs sold today have a warranty of at least 8 years or 120,000 miles (192,000 kilometres) and are designed for 1,500 to 4,000 cycle rating (full to empty = 1 cycle) or 600,000 to 2 million kilometres of use, the concern seems more fuelled by other factors such as unbalanced media reports and previous experience with cell phones than actual data.
The future widespread adoption of EVs in North America has as much to do with continually removing barriers and objections as anything else. Once purchase price was a very significant issue, now that has been removed. Now concerns over battery longevity have become an issue, yet with long warranties and improved technologies, this will also pass by the wayside. Fire risk has been a concern among some, but the actual data shows the rates of EV fires are miniscule when compared to IC vehicles.
Will other concerns pop up for EVs over the next few years? Almost definitely, and those too will be worked through. There’s absolutely no doubt that EVs will become the dominant form of transportation over the next 20 years because they are far less polluting, technically superior and now, lower cost.
While the industry’s fortunes will go up and down, over the long term, EV dominance of the automotive industry is something you can bank on.
■ Related articles
- Why the future of transportation in the US remains battery electric (by James Carter)
- Soon EVs will be the only vehicles purchased by lower mainstream buyers (by James Carter)
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SK Innovation
SK Innovation's merged entity officially launches, setting sail as the largest private energy company in Asia-Pacific
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Trends & Reports
[Energy Tidbits] From liquor casks to the global standard for crude oil – the amazing transformation of the barrel
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INSIGHT
How EVs are becoming the value choice in North America (by James Carter)
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SK Innovation subsidiaries appoint new CEOs for 2025
In response to current challenges and to bolster core competitiveness, SK Innovation has appointed new technology-driven CEOs for three of its subsidiaries: SK Energy, SK Geo Centric, and SK IE Technology. The announcement was made on the 24th. The newly appointed CEOs are all from engineering backgrounds, emphasizing a focus on technology and field operations. SK Innovation explained that these leaders are expected to deliver tangible results in the company's strong push for Operation Improvement (O/I). Kim Jong-hwa, currently the Head of SK Energy Ulsan CLX has been appointed as the new CEO of SK Energy. With a background in engineering, Kim is recognized as the top production expert within Ulsan CLX, having extensive experience in both refining and chemical businesses. Amidst the volatile oil price environment, Kim is anticipated to contribute to stable process operations and product competitiveness, driving continuous profit generation. Kim joined the company in 1994 when it was known as Yukong, the predecessor of SK Innovation. He has held key positions in field management, including Head of Engineering at SK Energy, Head of Safety, Health, and Environment (SHE) at SK Innovation, and Chief Safety Officer (CSO) at SK Geo Centric. Since last year, he has been overseeing Ulsan CLX. Choi Ahn-seop, the Head of the Materials Division at SK Geo Centric, has been appointed as the new CEO of SK Geo Centric. Choi, originally an R&D researcher, has held significant roles such as Head of Optimization Office and Head of Strategy & Planning Division at SK Geo Centric. His extensive experience and capability in developing high-value products make him the ideal candidate to drive future growth for SK Geo Centric. Lee Sang-min, Head of Green Growth Division at SK Enmove, has been appointed as the new CEO of SK IE Technology. Also an R&D researcher by training, Lee has developed advanced technologies at SK Technology Innovation Center and has built expertise in growth businesses as Head of Green Growth at SK Enmove. His achievements include successfully launching key new businesses such as HVAC (Heating, Ventilation, and Air Conditioning) systems and e-Fluids for electric vehicles. Lee's appointment as CEO will be formalized at the annual shareholders' meeting in March next year. Notably, SK Innovation has made bold moves by appointing Choi Ahn-seop, born in 1972, and Lee Sang-min, born in 1975, signaling a shift towards younger leadership to prepare for a challenging future. Additionally, SK Geo Centric has promoted three individuals with proven performance and capabilities to new executive positions as part of a follow-up organizational restructuring. Given the tough conditions in the chemical business, the company has streamlined its organizational structure to enhance decision-making speed and execution power. An SK Innovation representative stated, "On November 1st, SK Innovation will merge with SK E&S to launch as a Total Energy & Solution Company. In line with our portfolio adjustments, we have swiftly stabilized the organization and appointed CEOs who will aggressively push forward with our O/I initiatives." [References] List of New Executive Appointments within SK Innovation Subsidiaries <CEOs> ◈ SK Energy - Kim Jong-hwa ◈ SK Geo Centric - Choi Ahn-seop ◈ SK IE Technology - Lee Sang-min <Executives> ◈ SK Geo Centric - Kim Yong-soo (Head of Management & Planning Office) - Choi Yun-seook (Head of Aromatic Plant) - Yeo Du-hyun (Head of Packaging Solution Division)
2024. 10. 24
SK Innovation subsidiaries appoint new CEOs for 2025
In response to current challenges and to bolster core competitiveness, SK Innovation has appointed new technology-driven CEOs for three of its subsidiaries: SK Energy, SK Geo Centric, and SK IE Technology. The announcement was made on the 24th. The newly appointed CEOs are all from engineering backgrounds, emphasizing a focus on technology and field operations. SK Innovation explained that these leaders are expected to deliver tangible results in the company's strong push for Operation Improvement (O/I). Kim Jong-hwa, currently the Head of SK Energy Ulsan CLX has been appointed as the new CEO of SK Energy. With a background in engineering, Kim is recognized as the top production expert within Ulsan CLX, having extensive experience in both refining and chemical businesses. Amidst the volatile oil price environment, Kim is anticipated to contribute to stable process operations and product competitiveness, driving continuous profit generation. Kim joined the company in 1994 when it was known as Yukong, the predecessor of SK Innovation. He has held key positions in field management, including Head of Engineering at SK Energy, Head of Safety, Health, and Environment (SHE) at SK Innovation, and Chief Safety Officer (CSO) at SK Geo Centric. Since last year, he has been overseeing Ulsan CLX. Choi Ahn-seop, the Head of the Materials Division at SK Geo Centric, has been appointed as the new CEO of SK Geo Centric. Choi, originally an R&D researcher, has held significant roles such as Head of Optimization Office and Head of Strategy & Planning Division at SK Geo Centric. His extensive experience and capability in developing high-value products make him the ideal candidate to drive future growth for SK Geo Centric. Lee Sang-min, Head of Green Growth Division at SK Enmove, has been appointed as the new CEO of SK IE Technology. Also an R&D researcher by training, Lee has developed advanced technologies at SK Technology Innovation Center and has built expertise in growth businesses as Head of Green Growth at SK Enmove. His achievements include successfully launching key new businesses such as HVAC (Heating, Ventilation, and Air Conditioning) systems and e-Fluids for electric vehicles. Lee's appointment as CEO will be formalized at the annual shareholders' meeting in March next year. Notably, SK Innovation has made bold moves by appointing Choi Ahn-seop, born in 1972, and Lee Sang-min, born in 1975, signaling a shift towards younger leadership to prepare for a challenging future. Additionally, SK Geo Centric has promoted three individuals with proven performance and capabilities to new executive positions as part of a follow-up organizational restructuring. Given the tough conditions in the chemical business, the company has streamlined its organizational structure to enhance decision-making speed and execution power. An SK Innovation representative stated, "On November 1st, SK Innovation will merge with SK E&S to launch as a Total Energy & Solution Company. In line with our portfolio adjustments, we have swiftly stabilized the organization and appointed CEOs who will aggressively push forward with our O/I initiatives." [References] List of New Executive Appointments within SK Innovation Subsidiaries <CEOs> ◈ SK Energy - Kim Jong-hwa ◈ SK Geo Centric - Choi Ahn-seop ◈ SK IE Technology - Lee Sang-min <Executives> ◈ SK Geo Centric - Kim Yong-soo (Head of Management & Planning Office) - Choi Yun-seook (Head of Aromatic Plant) - Yeo Du-hyun (Head of Packaging Solution Division)
2024. 10. 24
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