Kolon Industries, Hahn & Co. mull collaboration in film business

2024.02.28 10:41:24 | 2024.02.29 08:51:26

[Courtesy of Kolon Industries Inc.]이미지 확대

[Courtesy of Kolon Industries Inc.]

Kolon Industries Inc. is exploring the establishment of a joint venture and the operation of a film business unit in collaboration with Hahn & Company, a South Korean private equity investment firm.

Kolon Industries announced Tuesday that it is “considering the establishment of a JV with Hahn & Co.,” saying that the parties have signed a legally binding memorandum of understanding to outline the fundamental aspects before entering into a formal agreement.

The company further said that discussions on specific conditions between the parties are currently underway.

“Following due diligence and the board’s decision, we plan to sign the formal agreement in the first half of this year,” said an official from Kolon Industries.

Upon the execution of the formal agreement, synergies are anticipated with SK microworks in the portfolio of Hahn & Co.

The PEF invested nearly 1.6 trillion won ($1.19 billion) in 2022 to acquire SKC’s film business division and rebranded it as SK microworks.

Kolon Industries has been involved in the production of a diverse range of films, from those used in electronic displays to packaging films.

However, the profitability of Kolon Industries’ film and electronic materials business unit has suffered recently due to the downturn in the domestic film industry.

The film and electronic materials business unit reported an operating loss of 17.7 billion won in the third quarter of last year, continuing losses since the second quarter of 2022.

By Jung You-jung and Minu Kim

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