SK On agreed to swap equity in two China plants it had jointly operated with Chinese battery corporations EVE Energy. SK On will solely operate the Yancheng plant, and EVE will solely manage the Huizhou plant.
SK On disclosed that on the 20th it carried out an in-kind transaction to transfer 49% equity in EUE, a joint plant with EVE in Huizhou, Guangdong province, China, in exchange for receiving 30% equity in SKOJ, a joint plant in Yancheng, Jiangsu province, China.
EVE will additionally pay SK On the equity difference of 200 million yuan (about 41.2 billion won) in cash. SK On will hold 100% equity in the Yancheng plant, and EVE Energy will hold 100% equity in the Huizhou plant.
The two companies judged that the synergy from their joint plants in China was not high and decided to operate their plants separately. SKOJ has a production capacity of 27 GWh (gigawatt-hours), enough to supply volume for about 360,000 midsize electric vehicles. Near SKOJ is SKOY, SK On's standalone plant with a production capacity of 33 GWh.
An SK On official said, "As large new overseas plants begin operations, we are pursuing companywide operational efficiency."