SK Buys Dow’s PVDC Business
SK Global Chemical, part of SK Innovation, is buying another asset from Dow Chemical, this time its polyvinylidene chloride (PVDC) business. The acquisition includes all production facilities in the US state of Michigan, technologies and patents, as well as the Saran brand name.
PVDC is used primarily for household wrap and food/medicine film packaging because of its transparency and high barrier properties.
The purchase price was not disclosed, but sources said the acquisition could be worth $100 million. The deal is expected to close by the end of the year.
This latest transaction follows SK’s purchase of Dow’s ethylene acrylic acid (EAA) business for $370 million, which completed in September, as the South Korean company seeks to diversify and expand into the packaging and automotive markets. The group has previously stated its plans to turn SK Global Chemical into one of the world’s 10 largest chemical companies with sales of 33 trillion won by 2024.
A focus on China is also a key part of SK’s Deep Change 2.0 strategy. According to The Korea Herald newspaper, SK and Sinopec are planning to invest 740 billion won ($656 million) to expand capacity at their joint venture, Sinopec-SK Wuhan Petrochemical in Wuhan, Hubei province.
The partners expect to increase capacity at the complex from 2.2 million t/y for ethylene and derivatives (including PE and PP) to 3 million t/y by 2020.