Skip to content
  • KOSPI 2968.33 +23.06 +0.78%
  • KOSDAQ 998.47 +21.04 +2.15%
  • KOSPI200 391.96 +2.32 +0.60%
  • USD/KRW 1177.3 -3.00 -0.25%
  • JPY100/KRW 1,039.97 -5.84 -0.56%
  • EUR/KRW 1,330.41 -5.81 -0.44%
  • CNH/KRW 184.83 -0.27 -0.15%
View Market Snapshot

Renewable energy

SK Ecoplant to start offshore wind power business

To invest $389 million to buy Samkang M&T, South Korea’s wind farm substructure maker

By Nov 17, 2021 (Gmt+09:00)

A Samkang M&T employee works on jacket foundations, which support wind power generators
A Samkang M&T employee works on jacket foundations, which support wind power generators

SK Ecoplant Co., the construction unit of South Korea’s SK Group, is slated to enter the offshore wind power business by acquiring a local wind farm substructure maker in a move to focus on the eco-friendly energy sector.

SK Ecoplant, formerly known as SK Engineering & Construction, decided to invest a total 459.5 billion won ($388.6 million) in Samkang M&T Co. to become the company’s largest shareholder, according to their filings to South Korea’s financial regulator on Nov. 17. SK Ecoplant plans to buy a 31.83% stake for 342.6 billion won and spend 116.9 billion won to invest in convertible bonds issued by Samkang.

Samkang, established in 1999, started its offshore wind power business in the early 2010s. The company was known to have the best technology in South Korea to produce jacket foundations, fixed offshore wind power substructures, to support wind power generators.

In 2019, it signed a supply deal with Orsted, the world’s largest offshore wind farm developer. Samkang has also inked supply contracts with other foreign companies such as Belgium’s Jan De Nul NV (JDN). Samkang was the first South Korean company to export the substructures.

FOR GLOBAL OFFSHORE WIND POWER BUSINESS

SK Ecoplant aims to make inroads into the global offshore wind power market through the acquisition.

“Samkang M&T has global competitiveness in the offshore wind power parts sector,” said a SK Ecoplant source. “We secured a new business portfolio with the acquisition.”

In 2020, SK Ecoplant unveiled a plan to invest 3 trillion won in eco-friendly businesses such as the renewable energy sector by 2023 in a move to shift its core business away from plant construction. Earlier this year, the company bought nine waste treatment firms in South Korea.

“We plan to actively enhance the eco-friendly power generation business in line with the ESG management strategy pursued by the group,” SK Ecoplant CEO Park Kyung-il said, referring to environmental, social and governance.

Samkang plans to use the proceeds from SK Ecoplant’s investment for a new domestic factory that can produce 650,000 tons of substructures a year. Samkang is scheduled to start the construction early next year.

The global offshore wind power market is rapidly increasing. The global offshore wind power installation capacity is expected to grow from 35 gigawatts (GW) last year to 228 GW in 2030 and 1,000 GW in 2050 as the US, China and Europe are expanding their uses of offshore wind power, according to the Korea Environment Institute.

Write to Yeon-Su Shin and Kyung-Min Kang at sys@hankyung.com

Jongwoo Cheon edited this article.

Comment 0

0/300