SK Innovation announced online that it will merge its electric vehicle battery unit SK On with SK Enmove, its lubricants and immersion cooling technologies subsidiary. The combined entity, which will keep the name SK On, is scheduled to launch on Nov. 1 following board approvals on July 30.
The merger is part of SK’s broader effort to improve competitiveness in electrification and financial performance across the group.
Last year, there were reports that SK On was struggling to stay afloat due to lackluster demand. The company announced voluntary redundancy programs to cut its workforce, as well as implement efficiency measures to stem losses.
Today’s announcement outlined the board’s plan to raise cash by selling shares to outside investors, which should reduce financial pressure in the short term.
They expect this merger to improve their finances by about U.S.$862 million and boost pre-tax profits by about $615 million this year. In the long run, they hope to add more than $150 million in yearly profits by 2030 through cost savings and joint operations.