SK Innovation's unit invests in French subsidiary to acquire Arkema's business
SEOUL, AJU - The chemical manufacturing subsidiary of South Korean battery maker SK Innovation will invest some 196.4 billion won ($159 million) in its subsidiary in France to acquire Arkema France S.A.'s functional polyolefin business.
SK Innovation said in a regulatory filing on Tuesday that SK Global Chemical would use its investment to increase capital at its French subsidiary, SK Functional Polymer S.A.S. The investment would be completed on April 10.
In October 2019, SK Global Chemical said it would acquire Arkema's functional polyolefin business for 335 million euros ($368.5 million) to beef up its competitiveness in the global packaging industry. 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.
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.