Samsung SDI merger will focus on batteriesSamsung SDI and Cheil Industries yesterday announced that they had officially joined to become Samsung SDI Corporation, which will continue on as a materials and energy solutions provider.
Samsung SDI and Cheil Industries revealed the merger in March in a resolution by both companies’ boards of directors. The merger was approved in a shareholders’ meeting on May 30.
Samsung SDI Corporation’s energy unit will be headed by former Samsung SDI CEO Park Sang-jin, and its materials arm will be led by former Cheil Industries CEO Cho Nam-seong. The new merger will not continue with Samsung SDI’s plasma display panel TV business, which has been posting low profitability.
Samsung SDI’s shares closed 3.7 percent higher yesterday on the Kospi at the news that the company has ended its plasma TV business to focus on batteries.
The merged corporation’s combined sales were 9.4276 trillion won ($9.318 billion) for 2013, and it has combined assets of 15.5434 trillion won.
According to Samsung SDI, the new corporation will first focus on enhancing its competitiveness in the battery business by taking advantage of Cheil Industries’ materials technology.
The company said it will work on improving batteries used in electric cars and will also expand its materials business into the automobile market from its current focus on electronics and IT.
Samsung SDI Corporation will develop its photovoltaic sector using its energy storage technology and electrode materials to build solar-powered batteries.
With its plan in place, the company said it will emerge as a global leader in batteries and expects to have 29 trillion won in sales by 2020.
“By combining the capabilities of the two sectors, we were able to exceed the limit and discover future growth projects in fields beyond the current business areas,” said Park, who is now CEO of Samsung SDI’s energy solutions division. “We will continue to realize the vision of becoming a world-class global materials and energy solutions provider.”
“By increasing cooperation in the two sectors, we will overcome the uncertainties and maximize the performances of next-generation business,” said Cho Nam-seong, now CEO of Samsung SDI’s materials division.
BY kim jung-yoon [email@example.com]
More in Industry
Stores in malls fear change to retail law
Big business recoils at new legal legislation
Hyundai Mobis has developed a hydrogen-powered forklift
Asiana adapts passenger plane to carry more cargo