SK Global Chemical Co., an affiliate of South Korea’s top oil refiner SK Innovation Co., has added another asset from Dow Chemical Co., widening its business portfolio beyond petrochemical dependency.

SK Innovation said on Wednesday its subsidiary signed a deal to acquire the polyvinylidene chloride (PVDC) business from the U.S. chemical giant to expand its packaging product line. The company did not disclose the deal value, but market sources estimate it could be around $100 million.

The deal is the second transaction between SK Global Chemical and Dow Chemical. The SK affiliate bought Dow Chemical’s ethylene acrylic acid (EAA) business for $370 million earlier this year.

PVDC is used to make clear film packaging including plastic food wrap to block water and oxygen.

The latest deal encompasses Dow’s PVDC trademark right (SARAN™) and other intellectual properties as well as manufacturing facilities in Michigan.

With the two purchases, the Korean company has further reinforced its lineup in packaging materials. It has been diversifying its business portfolio from petrochemicals to high-value chemical sectors. To this end, it is strengthening R&D efforts and drawing innovation from outside players.

The company also aims to increase its footprint in China, the world’s largest packaging market, by using its existing infrastructure and networks.

By Hwang Hyung-gyu

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