KOLON Industries gains a new foothold by securing more than KRW 300 billion in funds.

KOLON Industries gains a new foothold by securing more than KRW 300 billion in funds.

▷ KRW 303.5 billion is secured by selling its entire stake in SKC KOLON PI.

▷ KOLON Industries is evaluated to have taken a major step in securing resources for future growth engines and improving cash flow.

▷ KOLON Industries plans to maximize its corporate value by forming partnerships in Korea and beyond and proceeding with new projects.

KOLON Industries (CEO Jang Hee-goo) gained a stronger foothold for investments in new growth engines by securing over KRW 300 billion in cash. The sale of its shares in SKC KOLON PI, which was first initiated last year, concluded on March 6. As a result, its 27.03% stake in SKC KOLON PI was handed over to Korea PI Holdings, according to KOLON Industries on the 9^th. The company earned KRW 303.5 billion from the sale.

SKC KOLON PI was jointly established in 2008 by KOLON Industries and SKC. It is the world’s first company in the polyimide film market and was listed on KOSDAQ in 2014. The two companies agreed to sell all their shares in the second half of last year and finalized Glenwood PE as the preferred bidder.

KOLON Industries plans to invest the newly secured funds in elevating existing businesses to new heights and developing new growth engines for the future. Priority is expected to be given to its aramid product (Heracron), which has been contributing to improving the company’s performance through increased sales, and its transparent PI film (CPI®), which was commercialized in May last year and has been delivering stable profits. It is also considering investments in the development of major components of the hydrogen fuel cell and the establishment of a new process for petroleum resin.

In order to maximize its future value, KOLON Industries is seeking to continue to improve its business portfolio. It is currently working to form diverse partnerships in Korea and beyond and proceed with related projects. Although details cannot be fully disclosed under a non-disclosure agreement, part of the funds secured will be used for fortifying existing businesses and investing in new businesses.

CEO Jang of KOLON Industries said, “We will push ahead with full-scale investment in not only organic growth based on the company’s intrinsic competence but also in inorganic growth that draws on external strengths such as M&As and strategic cooperation to enhance KOLON Industries’ competitiveness.”