SKC to invest $3.8 bn in secondary battery materials by 2025

South Korea's chemical material maker SKC will invest over 5 trillion won ($3.8 billion) in three sectors -- secondary batteries, semiconductors and eco-friendly items – under a sales target of 7.9 trillion won in 2025 and 11 trillion won in 2027.

At an Investor Day event hosted at his company's headquarters in Seoul, SKC CEO Park Won-cheol on Tuesday announced mid- to long-term business plans including the sales target for each sector by 2025 of 5.1 trillion won for secondary batteries, 2.3 trillion won for semiconductors and 500 billion won for eco-friendly products. SKC wants to raise those figures to 7 trillion, 3 trillion and 1 trillion won, respectively, by 2027.

Under its investment plan, SKC will expand copper foil output for making secondary battery materials, its main products, to 250,000 tons per year and consider entering the North American market. In addition, it will promote early investment in silicon cathode materials and form joint ventures with other companies.

In semiconductor materials, the company will develop glass substrates and in eco-friendly materials, it plans aggressive investment in biodegradable plastics and the green material Limex.

To build up funds for the investment, SKC will raise 1.8 trillion won by liquidating assets from sectors such as film including 1.4 trillion won in cash. Another 2.6 trillion won will come from government subsidies and policy financing.

The company also denied considering listing its copper foil-making affiliate SK Nexilis on the Korea Exchange, saying its expansionary funds were sufficient and its corporate value not sufficiently recognized.

Write to Jae-Fu Kim at hu@hankyung.com