Seoul – SKC has put 49% of its SKC Chemicals business into a joint venture with Kuwait's Petrochemical Industries Company (PIC).
Called, SK picglobal, the joint venture plans to build 1MT/year propylene oxide (PO) capacity. PO is widely used to make polyols for polyurethanes.
SKC signed an agreement with Kuwait's Petrochemical Industries Company (PIC) in August last year. This was to create a global joint venture in the chemical business.
The joint venture's corporate value totals $1.2bn. SKC has been involved in several transactions to set up the jv.
These included transferring borrowing of KRW 300 bn ($273 m), and on March 10, it received $464.6m from PIC. This is equal to 49% of the shares.
SK picglobal's plans could mean that it establishes a global PO production system of 1 MT/year.
SKC sold the stake because it wants to concentrate on mobility, semiconductors, display and eco-friendly businesses.
Currency Exchange: XE.com