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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, August 25, 2025 — SK Innovation has decided to sell overseas petrochemical subsidiaries in the United States and France, which it had previously acquired to strengthen its high-value materials business and diversify global markets.
According to investment banking industry sources, SK Geocentric, the petrochemical subsidiary of SK Innovation, has engaged international advisors and is in discussions with potential buyers regarding the sale of packaging-related business units acquired from Dow Chemical (U.S.) and Arkema (France).
The assets on the block include the Ethylene Acrylic Acid (EAA) and Polyvinylidene Chloride (PVDC) businesses acquired from Dow Chemical in 2017, as well as the functional polyolefin business purchased from Arkema in 2019. At the time, SK Innovation positioned packaging materials as a next-generation growth engine, aiming to elevate SK Geocentric into the global top 10 chemical companies. EAA and PVDC are widely used in food, beverage, cosmetics, and pharmaceutical packaging, while polyolefins are applied in food packaging and wire coatings.
Although these businesses enjoyed strong demand during the COVID-19 pandemic, performance has since weakened amid oversupply from Chinese and other global competitors.
Market observers are also watching whether SK Geocentric will accelerate domestic consolidation, particularly a potential merger with Korea Petrochemical Ind. Co. (KPIC) involving its Ulsan naphtha cracker (NCC) facilities. SK Innovation, however, declined to confirm the divestment process, stating only that it is reviewing a range of strategic options.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
