Latest news with #SKInnovation
Yahoo
04-08-2025
- Automotive
- Yahoo
South Korean battery-maker SK On to merge with SK Enmove
SK Innovation Company, the energy unit of South Korean conglomerate SK Group, announced that it has approved the merger of its EV battery manufacturing subsidiary SK On Company with its EV lubricants subsidiary SK Enmove Company. The boards of the three companies recently signed an agreement for SK On to 'absorb' the operations of SK Enmove, with the new combined company to be officially launched on 1st November – along with a major 'capital expansion initiative.' SK On is one of South Korea's top 3 EV battery manufacturers, but has been struggling with slower-than-expected growth in global battery electric vehicle (BEV) sales. SK Enmove produces lubricants, immersion cooling solutions and air conditioning refrigerants for EVs and other applications. The merger is expected to enhance the competitiveness and accelerate growth in SK Innovation's electrification business, which is seen as a key driver of future growth. It is expected to generate additional revenues through the development of synergies between the two companies' customers and businesses, and facilitate entry into new markets. SK Innovation confirmed the boards of SK Innovation and SK On have 'approved a resolution for a large-scale capital increase through third-party allotment, marking a proactive step in capital financing.' The company said it aims to raise a total of KRW 8 trillion (US$ 5.7 billion) in new capital this year. SK Innovation said the merger and financial restructuring are part of its strategy 'to become a leading total energy company with top-tier competitiveness in the future era of electrification,' as it targets KRW 20 trillion in EBITDA by 2030. Lee Seok-hee, CEO of SK On, said in a statement: 'With the expected synergies from the merger, including the integration of both companies' technological and business capabilities, we anticipate showcasing a higher level of competitiveness in the global market.' "South Korean battery-maker SK On to merge with SK Enmove" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Bloomberg
03-08-2025
- Automotive
- Bloomberg
Korea's SK On Aims to Best Rivals With Next-Generation Batteries
SK Innovation Co. 's battery unit plans to accelerate development of cutting-edge technologies in partnership with US and European carmakers, its R&D chief said, aiming to win back market share from peers in China and South Korea. SK On is focused on honing its edge in thermal management technology, such as immersion cooling designed to boost the efficiency of batteries for AI data centers, energy storage systems and electric vehicles, Park Kisoo, head of the company's research and development arm, said in an interview. The battery specialist already is in talks with Ford Motor Co. and Hyundai Motor Co. to collaborate on the cutting-edge tech, he said.
Yahoo
01-08-2025
- Automotive
- Yahoo
Korean battery maker SK On to merge with SK Enmove
SK Innovation Company, the energy unit of South Korean conglomerate SK Group, has announced that it has approved the merger of its EV battery manufacturing subsidiary SK On Company with its EV lubricants subsidiary SK Enmove Company. The boards of the three companies recently signed an agreement for SK On to 'absorb' the operations of SK Enmove, with the new combined company to be officially launched on 1st November – along with a major 'capital expansion initiative.' SK On is one of South Korea's top three EV battery manufacturers, but has been struggling with slower-than-expected growth in global battery electric vehicle (BEV) sales. SK Enmove produces lubricants, immersion cooling solutions and air conditioning refrigerants for EVs and other applications. The merger is expected to enhance the competitiveness and accelerate growth in SK Innovation's electrification business, which is seen as a key driver of future growth. It is expected to generate additional revenues through the development of synergies between the two companies' customers and businesses, and facilitate entry into new markets. SK Innovation confirmed the boards of SK Innovation and SK On have 'approved a resolution for a large-scale capital increase through third-party allotment, marking a proactive step in capital financing.' The company said it aims to raise a total of KRW 8 trillion (US$ 5.7 billion) in new capital this year. SK Innovation said the merger and financial restructuring are part of its strategy 'to become a leading total energy company with top-tier competitiveness in the future era of electrification,' as it targets KRW 20 trillion in EBITDA by 2030. Lee Seok-hee, CEO of SK On, said in a statement: 'With the expected synergies from the merger, including the integration of both companies' technological and business capabilities, we anticipate showcasing a higher level of competitiveness in the global market.' "Korean battery maker SK On to merge with SK Enmove" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
30-07-2025
- Automotive
- Yahoo
SK Group Just Dropped a $5.8 Billion Bombshell--Here's Why It Could Reshape the EV Race
SK Group is making a bold $5.8 billion move to clean up its balance sheet and reorganize its energy empire. The South Korean conglomerate plans to raise 8 trillion won by year-end, primarily through a mix of share sales and perpetual bonds. According to the company's statement, the bulk of the proceeds will come from SK Innovation, SK On, SK IE Technology, and a fresh capital injection. The funds will go toward paying down over 9.5 trillion won in net debt and streamlining operations through a key merger between SK On and SK Enmove. Warning! GuruFocus has detected 9 Warning Signs with KKR. This restructuring comes at a time when cracks are starting to show across the global electric vehicle value chain. SK On CEO Lee Seok-Hee acknowledged that a slowdown in EV demand, combined with supply chain friction and higher interest rates, has forced the company to rethink its model. This slowdown has offered us an opportunity to reorganize our business and improve the operational structure, he told investors. The merger is being positioned not as a retreat, but as a recalibrationpossibly a defensive move to stay competitive as the EV sector enters a more disciplined growth phase. Investors appear to be buying the story. Shares of SK Innovation jumped 5.1% in Seoul trading on Wednesday, their biggest gain in a month. The restructuring could ripple across the EV ecosystem, with implications for global battery customers like Tesla (NASDAQ:TSLA), who may benefit from a leaner, more focused Korean supplier base. While the success of the plan will depend on execution, the shift signals that SK isn't waiting for the market to recoverit's trying to shape its own path forward. This article first appeared on GuruFocus.
Bloomberg
30-07-2025
- Business
- Bloomberg
SK Group Plans to Raise $5.8 Billion to Reorganize Energy Units
SK Group is planning raise 8 trillion won ($5.8 billion) by the end of the year to overhaul the South Korean conglomerate's energy units and help pay off much of their debt. The fundraising will mainly involve the sale of shares by SK Innovation Co. and its units, plus the issuance of perpetual bonds, according to a statement on Wednesday. As part of the reorganization, SK Innovation's SK On and SK Enmove units will merge, it said.
