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(LEAD) SK to take over Dow Chemical's EAA unit for US$370 mln

All Headlines 14:01 February 02, 2017

(ATTN: ADDS more details in last 3 paras)

SEOUL, Feb. 2 (Yonhap) -- SK Innovation Co., the country's No. 1 oil refiner, said Thursday that its affiliate has decided to take over Dow Chemical Co.'s ethylene acrylic acid (EAA) business in a bid to diversify its business portfolio.

Its affiliate SK Global Chemical Co. will buy Dow Chemical's EAA business for US$370 million, it said in a regulatory filing.

The deal includes the purchase of EAA production facilities in the United States and Spain, and the related technology, it added.

The company said the takeover is aimed at helping it venture into the packaging business. EAA materials offer excellent adhesion to foil, paper, polyolefins and other packaging substrates. Only a few global chemicals makers, such as DuPont Co., have reigned in the global market for the material, according to SK Innovation.

Earlier, SK Innovation said it would spend 3 trillion won this year to boost its chemicals and electric vehicle battery businesses.

(LEAD) SK to take over Dow Chemical's EAA unit for US$370 mln - 1

SK Innovation said it plans to complete the takeover deal during the first quarter of the year, after winning regulatory approval.

The company said its portfolio of high value-added products will be expanded with the takeover.

The global market for the EAA, currently estimated at some 140,000 tons, is expected to grow at an annual rate of between 2 percent to 3 percent, it said.

sam@yna.co.kr
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