SK Innovation announced this week that it is buying Dow Chemical’s ethylene acrylic acid (EAA) unit for $370 million.
SK Innovation is a subsidiary of SK Group, one of the largest conglomerates in South Korea. The purchase will expand the company’s value-added chemicals portfolio. The company has four business segments: petroleum development and manufacturing, chemicals and lubricants. Its chemicals unit focuses on ethylene, polypropylene, synthetic resins and more.
EAA is mostly used as an adhesive for wrapping products like aluminum foil.
According to Reuters, the divestiture is part of Dow’s restructuring plans as it undergoes regulatory review for its merger with DuPont.
SK indicated last month that it has plans to increase its growth by investing around $2.5 billion this year in chemicals, oil exploration and its battery business.
"We will continue strategic investments to upgrade our business structure and in the long term we aim to be the leader in high-value added chemicals for emerging markets including China," Kim HyungKun, president of SK Global Chemical, said in a statement.
The purchase will include Dow’s EAA business in the U.S. and Spain.