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[THE INVESTOR] SK global chemical, an affiliate of leading refiner SK innovation, has recently set up a 50:50 joint venture with Chinese tech giant TCL Group for the production of chemical products for chips and displays, Chosun Biz reported on Aug. 1.
The new entity, called SK TCL Taidong, was created through funding from SK Global China Chemical Holdings, the chemical firm’s Chinese investment unit, and TCL Taidong Chemical, the Chinese partner’s chemicals business affiliate. The deal size was not revealed.
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| An SK global chemical plant in Ulsan |
The report said the firm is considering producing propylene glycol monomethyl ether acetate (PMA), a commonly used solvent in display and semiconductor industries. Currently, Dow Chemical and Shell Chemical are the sole producers.
Demand for PMA is expected to soar especially in China where display and chipmakers are increasingly beefing up production, becoming a direct threat to Korean and Japanese rivals.
The report said the new firm is searching for the plant site, with Huizhou, a city in southeast Guangdong Province where TCL is headquartered, being cited as the possible candidate.
The new Chinese JV comes as SK, the nation’s third-largest conglomerate, is ramping up efforts to further expand its presence in the all-important Chinese market. Over the past week alone, SK announced plans to invest a combined 2.4 trillion won (US$2.10 billion) in the market.
By Lee Ji-yoon (jylee@heraldcorp.com)