SKC, one of South Korea's top chemical product makers, will sell its polyurethane raw material business, in a bid to accelerate the company's businesses focused on secondary batteries, semiconductors, and eco-friendly materials.

Seoul, South Korea: In an official statement released by SKC following a board meeting on October 12, the chemical company's executive board resolved to divest a complete ownership stake in SK Pucore, the polymer material production division of SKC, for a sum of 410.3 billion won (USD 303.9 million). The recipient of this stake is set to be the private equity firm, Glenwood Private Equity.

Renowned as the manufacturing hub for polyol, the primary raw material for polyurethane (PU) goods, SK Pucore has been a key player in the industry. Notably, the company pioneered the development of "Re-Polyol," an environmentally friendly iteration of polyol crafted from recycled materials—a groundbreaking achievement for a South Korean enterprise. Furthermore, SK Pucore has experienced significant global expansion, establishing production facilities overseas in countries such as the United States, China, Poland, and Mexico.

According to the company, SKC has opted to divest its polyurethane (PU) production facility as part of a strategic initiative aimed at reshaping the chemical company into a globally recognized "global material ESG solution" enterprise with a focus on secondary batteries, semiconductors, and environmentally friendly materials. The proceeds from this sale will be utilized to enhance the company's financial stability and boost investments in the burgeoning sectors of secondary batteries and eco-friendly materials, aligning with the increasing global demand in these areas. As a testament to its commitment, the company has recently completed the construction of a copper foil factory in Malaysia to fortify its operational capabilities.

According to TechSci Research, In the wake of increasing environmental consciousness and a global push towards sustainable practices, the landscape of eco-friendly material businesses is undergoing a transformative journey. This shift is not merely a trend but a crucial response to the pressing need for industries to adopt environmentally responsible practices. As the world grapples with climate change and resource depletion, the demand for sustainable materials has become a driving force shaping the future of various industries. Eco-friendly materials, also known as green or sustainable materials, are those that have minimal impact on the environment throughout their lifecycle. This encompasses raw material extraction, production processes, usage, and eventual disposal. The business of eco-friendly materials is multifaceted, spanning a myriad of industries including construction, textiles, packaging, and electronics.

The key drivers behind the surge in eco-friendly material businesses is the growing awareness among consumers about the environmental impact of their choices. Consumers are increasingly seeking products that are not only high-quality but also produced with a minimal carbon footprint. As a result, businesses are compelled to adopt sustainable practices to meet this demand and gain a competitive edge in the market.

In the construction industry, for instance, the use of eco-friendly materials has become a cornerstone of sustainable building practices. From recycled steel and reclaimed wood to energy-efficient insulation materials, builders are incorporating environmentally responsible choices to reduce the industry's overall environmental impact. This not only aligns with green building certifications but also reflects a commitment to a more sustainable future. Eco-friendly fabrics such as organic cotton, hemp, and recycled polyester are gaining popularity as consumers seek to minimize the environmental toll of the fast fashion culture. This shift is prompting fashion brands to reevaluate their supply chains and invest in sustainable practices, from material sourcing to responsible manufacturing.

The future of eco-friendly material businesses is not just about meeting current environmental standards but about pioneering a sustainable paradigm shift. Businesses that embrace this shift are not only contributing to a healthier planet but are also positioning themselves for long-term success in a world where sustainability is a key driver of innovation and consumer choice.