STX eyes EV market with acquisition of Dpeco

STX headquarters in central Seoul [STX]

STX has submitted its letter of intent to acquire Dpeco, a Gangwon-based electric truck maker, as it attempts to jump into the EV market.

The Korean company said Wednesday that it submitted the letter to Deloitte Korea, the lead manager of the deal.

Established in 1998, Dpeco launched Potro, the micro electric cargo truck, in 2010. It has been going through a corporate rehabilitation process since September after its 49,077 square meters (528,040 square feet) manufacturing plant in Hoengseong, Gangwon, was shut down in January amid financial difficulties.

"STX will exert maximum effort toward the sale in order for Korea's electric truck business to gain competitiveness in the global market," STX said in a statement. "The global demand for small electric trucks, which was around 400,000 in 2018, is expected to grow to 1.8 million next year."

The bidding will take place on Dec. 26.

Earlier this month, STX acquired 20 percent of International Battery Technology, a lithium iron phosphate battery maker, for 2 billion won ($1.5 million).

BY SARAH CHEA [chea.sarah@joongang.co.kr]