SK Innovation's chemijcal unit to acquire Arkema's functional polyolefin business
SEOUL, AJU - In an effort to beef up its competitiveness in the global packaging industry, the chemical manufacturing subsidiary of South Korean battery maker SK Innovation will acquire Arkema France S.A.'s functional polyolefin business for 335 million euros ($368.5 million).
SK global chemical said in a statement on Tuesday that it would acquire Arkema's tangible and intangible assets in France. The acquisition will be finalized by the end of the second quarter of 2020. Arkema is a multinational specialty chemicals and advanced materials company.
Functional polyolefin is a type of polymer used in the production of daily items ranging from oxygen barrier packaging for long shelf-life of food products and soundproof materials fitted inside a car. It is flexible, tough and easy to process. Functional polyolefin is also easy to mix with other plastics, making it possible to create plastic alloys.
“By securing production and sales company as well as technical and marketing personnel in Europe, we now have the world's best competitive edge in providing total solutions in all areas of packaging,” an SK global chemical official was quoted as saying.
Through the acquisition of Arkema's functional polyolefin business, SK global chemical will secure additional business rights, technology and manpower for three production facilities in France and four products such as ethylene acrylate copolymer, ethylene acrylate terpolymer, ethylene-vinyl acetate copolymer, and MAH grafted polymer (MAH-G).
To broaden its global presence and set a firm footstone into the packaging market, SK global chemical acquired American chemical company Dow's ethylene acrylic acid (EAA), and polyvinylidene chloride (PVDC) businesses including Dow's chemical manufacturing facility in Spain in 2017. EAA is a copolymer widely used in the production of adhesives and sealants. PVDC is a synthetic thermoplastic mainly used to coat plastic films to give the film a high gloss finish and abrasion resistance.