SK Global Chemical ready to jumpstart as a major player in the high performance packaging market, strengthening its packaging materials portfolio

– SK Global Chemical to finalize its 335M Euro proposed acquisition of Arkema’s Functional Polyolefin business by 2Q 2020.
– Following previous acquisitions of EAA∙PVDC from Dow in 2017, SK Global Chemical emerges as a global leader in America and Europe with a solid foundation for high performance polymer production, sales, technology, and marketing.
– Based on a strong packaging portfolio, it offers a one-stop multi-layered packaging solution to customers.
– CEO Na Kyung-soo pledges SK Global Chemical will become a global top tier company, expands not only the European and American markets, but also the Asian market.

SK Global Chemical has signed put option to acquire the Functional Polyolefin business of Arkema as a springboard into the global high-value added packaging materials market with its top-tier core materials portfolio and technologies.

SK Global Chemical held a board meeting on the 14th and reached the decision to make an offer to acquire the Functional Polyolefin business of Arkema, a global manufacturer in specialty chemicals and advanced materials. The disposal is subject to an information and consultation process involving Arkema’s employee representative bodies and to the approval of the relevant antitrust authorities. The acquisition, worth 335 million Euros, is expected to be finalized by the 2Q of next year.

SK Global Chemical previously purchased Ethylene Acrylic Acid (EAA) and PolyVinyliDene Chloride (PVDC) from Dow in 2017 to expand into the North American region while at the same time building a solid ground for growth in the packaging industry. The latest proposed acquisition of Arkema’s Functional Polyolefin business will provide production and sales networks, technology and marketing talents, and a large European client base, offering a total solution in all aspects of the packaging industry.

This will give SK Global Chemical the competitive edge in American and European markets, where packaging industries are high value, while maximizing the synergy between previously acquired and new businesses.

It also enables SK Global Chemical to provide a multi-layered packaging solution, differentiated to each customer with customer-centered marketing strategies based on a stronger materials portfolio. It will also allow expansion of its customer base in the packaging arena with more effective marketing campaigns and additional supply opportunities. Furthermore, the company can bring operational efficiency and save logistics costs by integrating its global logistics system to encompass product storage and transportation.

SK Global Chemical has been focused on the acquisition of the materials portfolio, prioritizing the high value packaging business on the next generation growth list.

A case in point is its acquisition of EAA and PVDC, which are mainly used as tie and barrier layer, from Dow Chemical in 2017.

The acquisition grants SK Global Chemical with Arkema’s three France based production facilities, technology and marketing talents for four products including Ethylene Acrylate Copolymer, Ethylene Acrylate Terpolymer, Ethylene Vinyl Acetate Copolymer, Maleic Anhydride Grafted Polymer.

Those four products are mainly used as adhesive in multi-layer packaging, and Arkema has one of the the world’s best technological competitiveness in the packaging market as the major player in global market.

CEO of SK Global Chemical Na Kyung-soo said, “The packaging portfolio has been upgraded to the level of Dow, a major global market player, with Functional Polyolefin business acquisition in Europe.” He added, “The differentiated competitiveness will help SK Global Chemical to expand, not only the packaging industries of the European and American markets, but also in the Asian market, including China. Utilizing SK Global Chemical’s infrastructure and network in China, SK Global Chemical will grow to be a top global player in the high value packaging industry.”