SKC, a company of SK Group, said on Monday that in order to diversify its business portfolio, this week it will acquire KCFT, the world's largest copper foil manufacturer for lithium-ion batteries.
SKC's subsidiary SKCFT Holdings will acquire 100% of KCFT's shares from the US private equity fund Kohlberg Kravis Roberts & Co. at a price of 1.19 trillion won ($ 1 billion) on Tuesday.
SKC's business areas include the production of polyester films and materials for semiconductors and cosmetics. The company said it expects KCFT to become a new growth engine for its growing electric vehicle market. The acquisition aims to expand its mobile business.
It is reported that KCFT's sales in 2018 are about 300 billion won, accounting for 15% of the market. Ranked first in the global copper foil market in 2018. According to KCFT data, the global copper foil market reached USD 1.2 billion in 2017, an increase of 41% from USD 850 million in 2016. Its main customers include electric vehicle battery manufacturers LG Chem, Samsung and Panasonic.
Copper foil is used as the negative electrode material in the four major materials for the battery-the positive electrode material, the negative electrode material, the separation membrane, and the electrolyte. It is the core material for current flow. Half of the copper foils on the market are made of copper with a thickness of one-fifth of the hairline, and KCFT uses its own technology to produce 4.5-micron ultra-thin 50 kilometers with a thickness of only one-third of the hairline Copper foil roll. This is the longest copper foil roll in the world. SKC said that KCFT is the one out two manufacturers (another one is China TLHC) in the world capable of producing ultra-thin, high-strength copper foil products, and has the highest level of production efficiency in the world.