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SK Innovation SK Innovation and SK E&S announce merger, forming Asia-Pacific's largest private energy company with assets of KRW 100 trillion ■ To achieve EBITDA of KRW 20 trillion by 2030 through three major synergies: portfolio, financial/profit Structure, and growth momentum① Portfolio competitiveness: to establish portfolio competitiveness across all businesses, including current and future energy sectors② Strengthening financial/profit structure: to secure stable profit generation capabilities in addition to external growth in assets and sales③ Securing growth momentum: to enhance fundamental competitiveness and foster new businesses through the integration of resources and capabilities■ To enhance raw material sourcing competitiveness and improve profit structure through the merger of SK On, SK Trading International, and SK EntermSK Innovation and SK E&S have announced their decision to merge, evolving into a comprehensive energy company that encompasses the entire value chain of both current energy sources (such as oil and LNG) and future energy sources (including renewable energy, hydrogen, and SMR), as well as electrification businesses like batteries and ESS.Upon merging, the combined entity will transform into a colossal energy company with assets totaling KRW 100 trillion and revenues of KRW 88 trillion, positioning itself as the largest private energy company in the Asia-Pacific region.In pursuit of this goal, SK Innovation and SK E&S each held board meetings on the 17th and approved the merger proposal. If the merger plan is approved at the shareholders' meeting scheduled for the 27th of next month, the merged corporation will officially launch on November 1st.The merger ratio between the two companies is set at 1:1.1917417, calculated based on the corporate values of SK Innovation and SK E&S. Based on this ratio, SK Innovation, as the listed company, will issue new shares to SK Inc., the shareholder of SK E&S, amounting to 49,769,267 shares. The new shares of SK Innovation are expected to be listed on November 20th, and post-merger, SK Inc.'s stake in SK Innovation is anticipated to increase from 36.22% to 55.9%.On the same day, SK On, SK Trading International, and SK Enterm each convened their respective board meetings and resolved to merge the three companies.◈ Evolving into a Total Energy & Solutions Company, leading current and future energyThe merger between the two companies is being undertaken to proactively address the rapidly evolving external business environment, which includes the prolonged global economic downturn, heightened uncertainty in the energy and chemical sectors, and the chasm in the electric vehicle market. Additionally, the merger aims to secure competitiveness in future energy business areas.SK Innovation was established in 1962 as the first oil refining company in Korea. The company has expanded its business portfolio to include petrochemicals, lubricants, and oil exploration. It is now diversifying into future energy sectors such as electric vehicle batteries, small modular reactors (SMR), ammonia, and immersion cooling, making it the largest energy company in the country.SK E&S was spun off from SK Innovation in 1999 as a city gas holding company. It has become Korea's leading private LNG company by completing the LNG value chain on a global scale. The company is transitioning to a green portfolio that organically integrates its four core businesses - city gas, low-carbon LNG value chain, renewable energy, and hydrogen and energy solutions, to create synergies.The merger is significant as it brings together two companies that have each grown to become the leading players in their respective business areas, solidifying their position as the largest private energy company in the Asia-Pacific region.Beyond external growth, the merger will generate synergies in three key areas: enhancing portfolio competitiveness, strengthening financial and profit structures, and securing growth momentum.Firstly, the merged company will develop a comprehensive portfolio that spans all areas, including energy sources (such as oil, chemicals, LNG, city gas, power, renewable energy, batteries, ESS, hydrogen, SMR, ammonia, and immersion cooling), energy carriers, and energy solutions. This will lay a solid foundation for sustainable growth. Currently, global oil majors are also currently pursuing balanced portfolios across the energy sector through various mergers and acquisitions. Additionally, the merged company will not only achieve a scale of KRW 100 trillion in assets and KRW 88 trillion in revenue but also strengthen its financial and profit structure, with EBITDA* increasing to KRW 5.8 trillion, up 1.9 trillion KRW from pre-merger levels. Notably, the merged company will be able to mitigate the high profit volatility of the petrochemical business, which has served as a reliable cash cow, with the stable profit generation capabilities of the LNG, power, and city gas businesses. An analysis of the pre-tax profit volatility over the past 10 years shows that the merged company's pre-tax profit volatility will be significantly reduced from 215% to 66%.*EBITDA: Earnings Before Interest, Taxes, Depreciation, and AmortizationFurthermore, by integrating assets and capabilities across both energy and electrification sectors, the merged company will bolster its core competitiveness and profitability. For instance, combining SK Innovation's crude oil refining, crude oil/petroleum product trading, and oil exploration operations with SK E&S's gas development, LNG trading, and combined cycle power generation will improve the economics and profitability of exploration and development. Additionally, the shared use of infrastructure such as ships and terminals will enable operational optimization.The electrification efforts pursued by both companies are also expected to gain momentum. SK Innovation has been advancing future energy businesses such as electric vehicle batteries, ESS, and thermal management systems, while SK E&S has focused on distributed power sources like renewable energy and district electricity businesses, as well as hydrogen, charging infrastructure, and energy solutions. The merged company will be able to combine the products and services of both companies to create new business models and pioneer new markets.The two companies anticipate that by 2030, the synergies from the integration will alone add over KRW 2.1 trillion to EBITDA, aiming for a total EBITDA of KRW 20 trillion.Park Sang-kyu, CEO & President of SK Innovation, stated, "The merger of the two companies represents a structural and fundamental innovation aimed at achieving sustainable growth by proactively responding to the changing environment surrounding the energy industry.” “Through this merger, SK Innovation will grow into a ‘Total Energy & Solution Company' that leads Korea's energy industry from the present into the future."Choo Hyeong-wook, CEO & President of SK E&S, commented, "This merger will not only strengthen the existing business capabilities of both companies but also secure growth engines for key future energy businesses.” “Based on the synergies created through the merger, SK E&S will enhance its green portfolio centered on its four core businesses and lead the future energy market."◈ Merger in trading and tank terminal businesses to boost SK On's continued growthSK Trading International, which has approved the merger with SK On, is Korea's sole specialized trading company for crude oil and petroleum products. Meanwhile, SK Enterm is the country's largest commercial tank terminal operator, specializing in the storage and handling of petroleum cargo. Through the merger of these three companies, SK On will be able to further strengthen its competitiveness in securing raw materials and ensure business sustainability. Additionally, SK Trading International will secure future growth engines by entering new mineral trading fields such as lithium and nickel, while the merger with SK Enterm will provide the necessary storage capacity for its trading business. Most importantly, the merger of the three companies is expected to improve the profit structure by generating an additional KRW 500 billion in EBITDA from the trading and tank terminal businesses.[Photos] (Photo 1) The journey of SK in the South Korean energy industry(Photo 2) Financial structure before and after merger(Photo 3) Ranking of energy companies in the Asia-Pacific region 2024. 07. 17 READ MORE |
INSIGHT Why the future of transportation in the US remains battery electric (by James Carter) What the heck is up with the electric vehicle industry??If you have read the North American media recently you would get the picture that the EV industry is in decidedly poor shape and the future is very uncertain.Here’s some recent news that we’ve seen in the last few months:It’s unfortunately all true.So, is this the end of electric vehicles (EVs)? What happened? What changed??Let me be VERY clear: NOTHING has changed in the medium- and long-term outlook for EVs.EVs will still be the dominant form of road transportation by the 2030s, and like every new technologically innovative industry that changes people’s behaviours, adoption has its pain points as the industry develops.Therefore, it’s really important to understand the recent history and dig into why we are at this point with EVs today.| EVs – A pathway forwardFor decades people have been thinking about how to drastically reduce pollution in our transportation, a dream of zero emissions and drastically reducing our reliance on oil and gas.EVs offered a pathway forward for zero emissions motoring that both completely nixed harmful tailpipe pollution, and drastically lowered carbon emissions over the vehicle’s life. The “WHY” of EV was clear.Back in the early 2010s the dream of the electric car came to fruition with the advent of the large lithium -ion battery, suitable for use in cars and trucks. The introduction of vehicles like the Nissan Leaf, and soon after the Tesla Model S, resulted in the volume production of EVs.These were breakthrough vehicles, and as the decade progressed, they were soon followed by other great purpose built EVs like the BMW i3, Chevrolet Bolt and later the extremely popular Tesla Model 3. What’s more, public chargers began to be installed and EV long distance travel for the middle class became a reality.| The COVID pandemic Supercharged EVsThen something crazy happened, COVID hit. This once in a century pandemic knocked the world off its feet.Governments pumped tons of money into the economy and EV purchasing and investing became the flavour of the month. Sales took off, share prices skyrocketed and the EV future looked like it had come! Between 2020 and 2023:• Tesla became a trillion-dollar company• Ford had hundreds of thousands of pre-orders for the F150 Lightning electric pickup• EVs sold at dealers for $10,000 or more over list• Governments mandated zero-emission vehicle (ZEV) sales mixes• Chargers were rolled out at breakneck speed• A tidal wave of new EV models was launched• Model Y became the top selling passenger vehicle in the US, only behind F150 and GM trucks. In fact, it became the world’s best-selling vehicle in 2023.An EV did this?? It sure did! Ten years ago, no one would have forecast that!| The bubble burstsYet, the unfortunate harsh reality was that it became an economic bubble that burst, with the onset of inflation and then high interest rates. Suddenly, car payments became much more expensive, and the whole automotive industry slowed.This resulted in wildly over valued EV share prices tanking, and some poorly thought out, newly formed EV SPACs (Special Purpose Acquisition Companies) began to look tenuous in their viability, and some went under. A look at the Tesla stock price over time gives a good indication of what happened. They are down by 50% on their all time high, but many multiples ahead of their 2018 valuation.Yet, something crazy happened: EV sales DID NOT TANK! They kept climbing, although at a slower rate than previously. It was clear that the message of “WHY EV” had cemented itself in consumer minds.However, OEMs, which had planned for extremely high levels of EV mix, based on 100% year on year sales increases, got caught out when EV sales ONLY expanded at 10% to 30% year on year. The result was oversupply, on expanding sales. In other words, a failure to forecast well was an industry wide problem with industry wide consequences.Yet, let’s remember how far EVs have come. Ten years ago, EV sales were well under 1% of total US sales. Today they’re north of 7% of the national US sales mix, and over 25% in California. By 2035 it will be 100% in California, as well as in Canada and states that follow California’s regulations, which account for nearly 50% of North America’s new car sales (not including Mexico).Globally, EV sales were up 30% to 3.4 million in Q1 2024 (the same as the annual volume number just 4 years ago), and some time in Q3 this year cumulative global EV sales to date will hit 50 million, with the IEA (The International Energy Agency) forecasting 16.4 million sales this year.In other words, EV sales in North America are only on one trajectory – up. There’s no going back.It’s worth taking a deep dive into the Q1 2024 US sales numbers to gain a deeper understanding of the current situation.While the US EV registrations rose by 3.8% year on year, compared to the usual 30 to 50% growth we’ve been seeing, it’s well short of expectations. However, it is still (just) ahead of the 3.5% US automotive market increase over the same period.The first place to look is Tesla. They are the “800-Pound EV Gorilla,” with over 60% US EV market share in 2023. Like Model 3, Model Y has been a runaway success due to its mix of performance space, new technology and access to the ubiquitous Tesla Supercharging network. Because of this large market share, any Tesla success or failure quickly superimposes itself on the broader EV market.Despite Tesla’s success, sales for Q1 2024 have dropped by 13% versus Q1 2023, a very rare event for the brand. There’s a couple of reasons for this. The first is that their key vehicle, Model Y, is starting to age. It’s been on sale for over 4 years with virtually no hardware changes, and its popularity is beginning to wane as newer competitors go on sale.The second is the production ramp up of the refreshed Model 3 “Highland” is taking longer than expected. Even though it’s a brand-new update of a very popular vehicle, sales have been off nearly 50%.In total, with Tesla off by 13%, their share was down to just over 50% of the EV market, and it thus held down the entire segment.However, for most EVs without a Tesla badge, the story was very different. After Tesla, the top two OEMs for EVs are Hyundai/Kia and Ford (both of whom use SK On batteries) who had sales well up on Q1 2023, with increases of 56% and 86% respectively. These are numbers much more typical of the growth we’ve previously seen with OEMs, and it is repeated with Rivian, Mercedes, BMW and Toyota.The major reason for this growth is a ramp up of incentives, and a focus on leasing. For OEMs that do not make EVs in the US (or Canada or Mexico), they do not qualify for the USD 7,500 federal incentive, except if the vehicle is leased. By applying the government incentive, adding a factory incentive and a customer down payment, incredibly attractive monthly payments have been offered for consumers, from as low as USD 240 per month. These sorts of offers have made EVs available for LESS than an equivalent IC vehicle, and with huge energy savings to be had on top, that’s a very tempting offer many retail customers are taking advantage of.| What’s next for EVs? Only UP!Looking into the short-term future, things will only get better, and there’s several reasons for that.The first is that the “800-Pound EV Gorilla,” Tesla, will be back with Model 3 Highland production issues sorted, and a major update of the Model Y due in early 2025. Simply put, they won’t be resting on their laurels, and significant sales volume will return.The second is new models from many different brands with more affordable prices launching soon. A plethora of a high-volume models with low starting prices are now dropping, including the Chevrolet Equinox, Volvo EX30 and soon the Kia EV3. This will only expand in 2025 and 2026. While we won’t see Chinese brands entering the US or Canadian market any time soon, they are selling in a big way in Mexico. Make no mistake, the impact of the Chinese OEMs will force OEMs selling in US and Canada to significantly reduce prices, speed up engineering development and offer more compelling product, even if the urgency is somewhat buffered by tariffs.The third is the localization of production for key EV models. By building in the North American Free Trade Agreement (NAFTA) countries, the USD 7,500 US federal credit is applicable on cash purchase and finance sales, as well as leased vehicles, thereby opening up the incentive to everyone. The first to localize was the Volkswagen ID4, and this is now being followed by the Hyundai IONIQ 5 and Kia EV9, which will result in a significant volume increase. Most other OEMs are following with local EV production over the next 3 to 4 years, including Honda, Toyota, Volvo, Mercedes, BMW and others.| Are hybrids the answer?Another piece to this story is the growth in hybrid sales, which in pure volumes terms, is similar to that of EVs. Many have pointed to this as a reason that EV sales are flat and that IC vehicles have a long-term future. What we’ve seen from the customer research done here at Vision Mobility is that hybrid buyers are ones that are struggling to make the jump from IC to EV, but still want to take a step towards a cleaner, more efficient vehicle. Buyers aren’t going from EV to hybrid, in fact it’s quite the opposite. Hybrids introduce drivers to electrons, and electrons are addictive, with the only way that they can be fully satiated is to go full EV. If one looks at previous vehicles for EV owners, there’s almost always a hybrid in there, yet once in an EV, they don’t go back as EV retention is generally north of 80%. Moreover, plug in hybrids offer buyers the same experience of charging as EVs, thereby increasing the comfort level further.These thoughts are closely reflected in current US policy direction and by forward looking incumbent OEMs. Jennifer Granholm, the US Secretary for Energy, said hybrids “are the step that will lead to (electrification). We are bullish on that.” Moreover, Korean OEM Kia Motors recently said that “hybrids aren't a threat to EVs but are the perfect gateway to electrification.”While hybrids offer buyers a “transitional comfort”, once the smoothness and performance of an EV drive is experienced and the realization occurs that it will suit their lifestyle just fine, there’s no going back.The point is this: hybrid owners of today are the EV owners of tomorrow.| All new technology has bumps in the road to success, EVs includedWhat this all adds up to is sustained medium- and long-term growth for EVs, and this is exactly the forecast from both BNEF (Bloomberg New Energy Finance) and IEA.On the other side of the COVID bubble, the WHY of EV hasn’t changed. The dream of clean air, lower transportation emissions and less reliance on oil and gas is not just still there; we are now FAR closer to that dream.Just like the dot com bubble 20 years ago, the EV bubble will have end results that are no different. The weak players are shaken out, but the strong players will not just survive, they’ll flourish. No one today can imagine going back to a world without the internet, and the same will happen with EVs in 20 years from now. Fundamentally, EVs are a far superior technology to internal combustion (IC) cars, and once the dust settles, EV growth will normalise until there are no IC models left on the market.In other words, the learning is nothing has changed, except that on the road to an EV reality, the dream came with a few bumps, just like almost every other major technological shift in the last 200 years.■ Related articles - SK On develops polymer electrolytes for lithium metal batteries- Soon EVs will be the only vehicles purchased by lower mainstream buyers (by James Carter)- Take the power with you: Why V2L is the must-have feature for new EVs (by James Carter)- A passport ensures ethical transparency and sustainability to the battery minerals supply chain (by James Carter) 2024. 07. 04 READ MORE |
SK Geo Centric World’s first* supply chain established for more sustainable polyester fiber based on CO2-derived material as well as renewable and bio-based materials A consortium of seven companies across five countries has jointly established a supply chain for more sustainable polyester fiber. Instead of fossil materials, renewable and bio-based materials as well as materials produced via carbon capture and utilization (CCU para-xylene)** will be used in the manufacturing of polyester fibers for THE NORTH FACE brand in Japan. The project parties are Goldwin, in the role of the Project Owner, Mitsubishi Corporation, Chiyoda Corporation (all three from Japan), SK Geo Centric (South Korea), Indorama Ventures (Thailand), India Glycols (India) and Neste (Finland). The polyester fiber produced from the project is planned to be used by Goldwin for a part of THE NORTH FACE products including sports uniforms in July 2024. After that, the launch of further products and brands of Goldwin will be considered.The seven companies apply a mass balancing approach*** to ensure credible traceability of material streams throughout the supply chain and will jointly continue to proactively promote the de-fossilization of materials to contribute to a more sustainable society.“This consortium has great significance as it is the first case where multiple companies gather under the same of reducing carbon by making sustainable polyester that will eventually be used in clothing products in the final stage,” said an official from SK Geo Centric. “This is just the beginning. We will strive to keep creating greater synergy through cooperation with global companies.” *World’s first: This refers to the first time CCU para-xylene (direct synthesis from CO) is applied and also to the first time a polyester is made without the use of fossil materials in collaboration among upstream material companies and a downstream apparel company through mass balancing, according to the companies’ research.**CCU para-xylene: Regarding the production of para-xylene derived from CO2 as a raw material, the University of Toyama, HighChem Company Limited, Nippon Steel Engineering Co. Ltd., Nippon Steel Corporation, Chiyoda Corporation and Mitsubishi Corporation were awarded in 2020 as a NEDO‘s project (New Energy and Industrial Technology Development Organization) "Technology Development for Carbon Recycling and Next Generation Thermal Power Generation/Technology Development for CO2 Emission Reduction and Effective Utilization" and are conducting the joint research and development. This project is to supply CO2-derived para-xylene as a trial, which was produced during the operation process of a pilot plant installed in Chiyoda Corporation's Koyasu Research Park since March 2022.***Mass balance / Mass balancing approach: A process that tracks the amount and sustainability characteristics of materials and enables allocation of such to a specific portion of the product in proportion to the input of the raw materials with sustainability characteristics, when they are mixed with other materials in the process of manufacturing and distribution of products.[Photo] The establishment of a sustainable polyester supply chain by the consortium formed by SK Geo Centric in collaboration with global petrochemical, fiber, and clothing companies 2024. 07. 05 READ MORE |
SK Innovation SK Innovation and SK E&S announce merger, forming Asia-Pacific's largest private energy company with assets of KRW 100 trillion ■ To achieve EBITDA of KRW 20 trillion by 2030 through three major synergies: portfolio, financial/profit Structure, and growth momentum① Portfolio competitiveness: to establish portfolio competitiveness across all businesses, including current and future energy sectors② Strengthening financial/profit structure: to secure stable profit generation capabilities in addition to external growth in assets and sales③ Securing growth momentum: to enhance fundamental competitiveness and foster new businesses through the integration of resources and capabilities■ To enhance raw material sourcing competitiveness and improve profit structure through the merger of SK On, SK Trading International, and SK EntermSK Innovation and SK E&S have announced their decision to merge, evolving into a comprehensive energy company that encompasses the entire value chain of both current energy sources (such as oil and LNG) and future energy sources (including renewable energy, hydrogen, and SMR), as well as electrification businesses like batteries and ESS.Upon merging, the combined entity will transform into a colossal energy company with assets totaling KRW 100 trillion and revenues of KRW 88 trillion, positioning itself as the largest private energy company in the Asia-Pacific region.In pursuit of this goal, SK Innovation and SK E&S each held board meetings on the 17th and approved the merger proposal. If the merger plan is approved at the shareholders' meeting scheduled for the 27th of next month, the merged corporation will officially launch on November 1st.The merger ratio between the two companies is set at 1:1.1917417, calculated based on the corporate values of SK Innovation and SK E&S. Based on this ratio, SK Innovation, as the listed company, will issue new shares to SK Inc., the shareholder of SK E&S, amounting to 49,769,267 shares. The new shares of SK Innovation are expected to be listed on November 20th, and post-merger, SK Inc.'s stake in SK Innovation is anticipated to increase from 36.22% to 55.9%.On the same day, SK On, SK Trading International, and SK Enterm each convened their respective board meetings and resolved to merge the three companies.◈ Evolving into a Total Energy & Solutions Company, leading current and future energyThe merger between the two companies is being undertaken to proactively address the rapidly evolving external business environment, which includes the prolonged global economic downturn, heightened uncertainty in the energy and chemical sectors, and the chasm in the electric vehicle market. Additionally, the merger aims to secure competitiveness in future energy business areas.SK Innovation was established in 1962 as the first oil refining company in Korea. The company has expanded its business portfolio to include petrochemicals, lubricants, and oil exploration. It is now diversifying into future energy sectors such as electric vehicle batteries, small modular reactors (SMR), ammonia, and immersion cooling, making it the largest energy company in the country.SK E&S was spun off from SK Innovation in 1999 as a city gas holding company. It has become Korea's leading private LNG company by completing the LNG value chain on a global scale. The company is transitioning to a green portfolio that organically integrates its four core businesses - city gas, low-carbon LNG value chain, renewable energy, and hydrogen and energy solutions, to create synergies.The merger is significant as it brings together two companies that have each grown to become the leading players in their respective business areas, solidifying their position as the largest private energy company in the Asia-Pacific region.Beyond external growth, the merger will generate synergies in three key areas: enhancing portfolio competitiveness, strengthening financial and profit structures, and securing growth momentum.Firstly, the merged company will develop a comprehensive portfolio that spans all areas, including energy sources (such as oil, chemicals, LNG, city gas, power, renewable energy, batteries, ESS, hydrogen, SMR, ammonia, and immersion cooling), energy carriers, and energy solutions. This will lay a solid foundation for sustainable growth. Currently, global oil majors are also currently pursuing balanced portfolios across the energy sector through various mergers and acquisitions. Additionally, the merged company will not only achieve a scale of KRW 100 trillion in assets and KRW 88 trillion in revenue but also strengthen its financial and profit structure, with EBITDA* increasing to KRW 5.8 trillion, up 1.9 trillion KRW from pre-merger levels. Notably, the merged company will be able to mitigate the high profit volatility of the petrochemical business, which has served as a reliable cash cow, with the stable profit generation capabilities of the LNG, power, and city gas businesses. An analysis of the pre-tax profit volatility over the past 10 years shows that the merged company's pre-tax profit volatility will be significantly reduced from 215% to 66%.*EBITDA: Earnings Before Interest, Taxes, Depreciation, and AmortizationFurthermore, by integrating assets and capabilities across both energy and electrification sectors, the merged company will bolster its core competitiveness and profitability. For instance, combining SK Innovation's crude oil refining, crude oil/petroleum product trading, and oil exploration operations with SK E&S's gas development, LNG trading, and combined cycle power generation will improve the economics and profitability of exploration and development. Additionally, the shared use of infrastructure such as ships and terminals will enable operational optimization.The electrification efforts pursued by both companies are also expected to gain momentum. SK Innovation has been advancing future energy businesses such as electric vehicle batteries, ESS, and thermal management systems, while SK E&S has focused on distributed power sources like renewable energy and district electricity businesses, as well as hydrogen, charging infrastructure, and energy solutions. The merged company will be able to combine the products and services of both companies to create new business models and pioneer new markets.The two companies anticipate that by 2030, the synergies from the integration will alone add over KRW 2.1 trillion to EBITDA, aiming for a total EBITDA of KRW 20 trillion.Park Sang-kyu, CEO & President of SK Innovation, stated, "The merger of the two companies represents a structural and fundamental innovation aimed at achieving sustainable growth by proactively responding to the changing environment surrounding the energy industry.” “Through this merger, SK Innovation will grow into a ‘Total Energy & Solution Company' that leads Korea's energy industry from the present into the future."Choo Hyeong-wook, CEO & President of SK E&S, commented, "This merger will not only strengthen the existing business capabilities of both companies but also secure growth engines for key future energy businesses.” “Based on the synergies created through the merger, SK E&S will enhance its green portfolio centered on its four core businesses and lead the future energy market."◈ Merger in trading and tank terminal businesses to boost SK On's continued growthSK Trading International, which has approved the merger with SK On, is Korea's sole specialized trading company for crude oil and petroleum products. Meanwhile, SK Enterm is the country's largest commercial tank terminal operator, specializing in the storage and handling of petroleum cargo. Through the merger of these three companies, SK On will be able to further strengthen its competitiveness in securing raw materials and ensure business sustainability. Additionally, SK Trading International will secure future growth engines by entering new mineral trading fields such as lithium and nickel, while the merger with SK Enterm will provide the necessary storage capacity for its trading business. Most importantly, the merger of the three companies is expected to improve the profit structure by generating an additional KRW 500 billion in EBITDA from the trading and tank terminal businesses.[Photos] (Photo 1) The journey of SK in the South Korean energy industry(Photo 2) Financial structure before and after merger(Photo 3) Ranking of energy companies in the Asia-Pacific region READ MORE |
INSIGHT Why the future of transportation in the US remains battery electric (by James Carter) What the heck is up with the electric vehicle industry??If you have read the North American media recently you would get the picture that the EV industry is in decidedly poor shape and the future is very uncertain.Here’s some recent news that we’ve seen in the last few months:It’s unfortunately all true.So, is this the end of electric vehicles (EVs)? What happened? What changed??Let me be VERY clear: NOTHING has changed in the medium- and long-term outlook for EVs.EVs will still be the dominant form of road transportation by the 2030s, and like every new technologically innovative industry that changes people’s behaviours, adoption has its pain points as the industry develops.Therefore, it’s really important to understand the recent history and dig into why we are at this point with EVs today.| EVs – A pathway forwardFor decades people have been thinking about how to drastically reduce pollution in our transportation, a dream of zero emissions and drastically reducing our reliance on oil and gas.EVs offered a pathway forward for zero emissions motoring that both completely nixed harmful tailpipe pollution, and drastically lowered carbon emissions over the vehicle’s life. The “WHY” of EV was clear.Back in the early 2010s the dream of the electric car came to fruition with the advent of the large lithium -ion battery, suitable for use in cars and trucks. The introduction of vehicles like the Nissan Leaf, and soon after the Tesla Model S, resulted in the volume production of EVs.These were breakthrough vehicles, and as the decade progressed, they were soon followed by other great purpose built EVs like the BMW i3, Chevrolet Bolt and later the extremely popular Tesla Model 3. What’s more, public chargers began to be installed and EV long distance travel for the middle class became a reality.| The COVID pandemic Supercharged EVsThen something crazy happened, COVID hit. This once in a century pandemic knocked the world off its feet.Governments pumped tons of money into the economy and EV purchasing and investing became the flavour of the month. Sales took off, share prices skyrocketed and the EV future looked like it had come! Between 2020 and 2023:• Tesla became a trillion-dollar company• Ford had hundreds of thousands of pre-orders for the F150 Lightning electric pickup• EVs sold at dealers for $10,000 or more over list• Governments mandated zero-emission vehicle (ZEV) sales mixes• Chargers were rolled out at breakneck speed• A tidal wave of new EV models was launched• Model Y became the top selling passenger vehicle in the US, only behind F150 and GM trucks. In fact, it became the world’s best-selling vehicle in 2023.An EV did this?? It sure did! Ten years ago, no one would have forecast that!| The bubble burstsYet, the unfortunate harsh reality was that it became an economic bubble that burst, with the onset of inflation and then high interest rates. Suddenly, car payments became much more expensive, and the whole automotive industry slowed.This resulted in wildly over valued EV share prices tanking, and some poorly thought out, newly formed EV SPACs (Special Purpose Acquisition Companies) began to look tenuous in their viability, and some went under. A look at the Tesla stock price over time gives a good indication of what happened. They are down by 50% on their all time high, but many multiples ahead of their 2018 valuation.Yet, something crazy happened: EV sales DID NOT TANK! They kept climbing, although at a slower rate than previously. It was clear that the message of “WHY EV” had cemented itself in consumer minds.However, OEMs, which had planned for extremely high levels of EV mix, based on 100% year on year sales increases, got caught out when EV sales ONLY expanded at 10% to 30% year on year. The result was oversupply, on expanding sales. In other words, a failure to forecast well was an industry wide problem with industry wide consequences.Yet, let’s remember how far EVs have come. Ten years ago, EV sales were well under 1% of total US sales. Today they’re north of 7% of the national US sales mix, and over 25% in California. By 2035 it will be 100% in California, as well as in Canada and states that follow California’s regulations, which account for nearly 50% of North America’s new car sales (not including Mexico).Globally, EV sales were up 30% to 3.4 million in Q1 2024 (the same as the annual volume number just 4 years ago), and some time in Q3 this year cumulative global EV sales to date will hit 50 million, with the IEA (The International Energy Agency) forecasting 16.4 million sales this year.In other words, EV sales in North America are only on one trajectory – up. There’s no going back.It’s worth taking a deep dive into the Q1 2024 US sales numbers to gain a deeper understanding of the current situation.While the US EV registrations rose by 3.8% year on year, compared to the usual 30 to 50% growth we’ve been seeing, it’s well short of expectations. However, it is still (just) ahead of the 3.5% US automotive market increase over the same period.The first place to look is Tesla. They are the “800-Pound EV Gorilla,” with over 60% US EV market share in 2023. Like Model 3, Model Y has been a runaway success due to its mix of performance space, new technology and access to the ubiquitous Tesla Supercharging network. Because of this large market share, any Tesla success or failure quickly superimposes itself on the broader EV market.Despite Tesla’s success, sales for Q1 2024 have dropped by 13% versus Q1 2023, a very rare event for the brand. There’s a couple of reasons for this. The first is that their key vehicle, Model Y, is starting to age. It’s been on sale for over 4 years with virtually no hardware changes, and its popularity is beginning to wane as newer competitors go on sale.The second is the production ramp up of the refreshed Model 3 “Highland” is taking longer than expected. Even though it’s a brand-new update of a very popular vehicle, sales have been off nearly 50%.In total, with Tesla off by 13%, their share was down to just over 50% of the EV market, and it thus held down the entire segment.However, for most EVs without a Tesla badge, the story was very different. After Tesla, the top two OEMs for EVs are Hyundai/Kia and Ford (both of whom use SK On batteries) who had sales well up on Q1 2023, with increases of 56% and 86% respectively. These are numbers much more typical of the growth we’ve previously seen with OEMs, and it is repeated with Rivian, Mercedes, BMW and Toyota.The major reason for this growth is a ramp up of incentives, and a focus on leasing. For OEMs that do not make EVs in the US (or Canada or Mexico), they do not qualify for the USD 7,500 federal incentive, except if the vehicle is leased. By applying the government incentive, adding a factory incentive and a customer down payment, incredibly attractive monthly payments have been offered for consumers, from as low as USD 240 per month. These sorts of offers have made EVs available for LESS than an equivalent IC vehicle, and with huge energy savings to be had on top, that’s a very tempting offer many retail customers are taking advantage of.| What’s next for EVs? Only UP!Looking into the short-term future, things will only get better, and there’s several reasons for that.The first is that the “800-Pound EV Gorilla,” Tesla, will be back with Model 3 Highland production issues sorted, and a major update of the Model Y due in early 2025. Simply put, they won’t be resting on their laurels, and significant sales volume will return.The second is new models from many different brands with more affordable prices launching soon. A plethora of a high-volume models with low starting prices are now dropping, including the Chevrolet Equinox, Volvo EX30 and soon the Kia EV3. This will only expand in 2025 and 2026. While we won’t see Chinese brands entering the US or Canadian market any time soon, they are selling in a big way in Mexico. Make no mistake, the impact of the Chinese OEMs will force OEMs selling in US and Canada to significantly reduce prices, speed up engineering development and offer more compelling product, even if the urgency is somewhat buffered by tariffs.The third is the localization of production for key EV models. By building in the North American Free Trade Agreement (NAFTA) countries, the USD 7,500 US federal credit is applicable on cash purchase and finance sales, as well as leased vehicles, thereby opening up the incentive to everyone. The first to localize was the Volkswagen ID4, and this is now being followed by the Hyundai IONIQ 5 and Kia EV9, which will result in a significant volume increase. Most other OEMs are following with local EV production over the next 3 to 4 years, including Honda, Toyota, Volvo, Mercedes, BMW and others.| Are hybrids the answer?Another piece to this story is the growth in hybrid sales, which in pure volumes terms, is similar to that of EVs. Many have pointed to this as a reason that EV sales are flat and that IC vehicles have a long-term future. What we’ve seen from the customer research done here at Vision Mobility is that hybrid buyers are ones that are struggling to make the jump from IC to EV, but still want to take a step towards a cleaner, more efficient vehicle. Buyers aren’t going from EV to hybrid, in fact it’s quite the opposite. Hybrids introduce drivers to electrons, and electrons are addictive, with the only way that they can be fully satiated is to go full EV. If one looks at previous vehicles for EV owners, there’s almost always a hybrid in there, yet once in an EV, they don’t go back as EV retention is generally north of 80%. Moreover, plug in hybrids offer buyers the same experience of charging as EVs, thereby increasing the comfort level further.These thoughts are closely reflected in current US policy direction and by forward looking incumbent OEMs. Jennifer Granholm, the US Secretary for Energy, said hybrids “are the step that will lead to (electrification). We are bullish on that.” Moreover, Korean OEM Kia Motors recently said that “hybrids aren't a threat to EVs but are the perfect gateway to electrification.”While hybrids offer buyers a “transitional comfort”, once the smoothness and performance of an EV drive is experienced and the realization occurs that it will suit their lifestyle just fine, there’s no going back.The point is this: hybrid owners of today are the EV owners of tomorrow.| All new technology has bumps in the road to success, EVs includedWhat this all adds up to is sustained medium- and long-term growth for EVs, and this is exactly the forecast from both BNEF (Bloomberg New Energy Finance) and IEA.On the other side of the COVID bubble, the WHY of EV hasn’t changed. The dream of clean air, lower transportation emissions and less reliance on oil and gas is not just still there; we are now FAR closer to that dream.Just like the dot com bubble 20 years ago, the EV bubble will have end results that are no different. The weak players are shaken out, but the strong players will not just survive, they’ll flourish. No one today can imagine going back to a world without the internet, and the same will happen with EVs in 20 years from now. Fundamentally, EVs are a far superior technology to internal combustion (IC) cars, and once the dust settles, EV growth will normalise until there are no IC models left on the market.In other words, the learning is nothing has changed, except that on the road to an EV reality, the dream came with a few bumps, just like almost every other major technological shift in the last 200 years.■ Related articles - SK On develops polymer electrolytes for lithium metal batteries- Soon EVs will be the only vehicles purchased by lower mainstream buyers (by James Carter)- Take the power with you: Why V2L is the must-have feature for new EVs (by James Carter)- A passport ensures ethical transparency and sustainability to the battery minerals supply chain (by James Carter) READ MORE |
SK Geo Centric World’s first* supply chain established for more sustainable polyester fiber based on CO2-derived material as well as renewable and bio-based materials A consortium of seven companies across five countries has jointly established a supply chain for more sustainable polyester fiber. Instead of fossil materials, renewable and bio-based materials as well as materials produced via carbon capture and utilization (CCU para-xylene)** will be used in the manufacturing of polyester fibers for THE NORTH FACE brand in Japan. The project parties are Goldwin, in the role of the Project Owner, Mitsubishi Corporation, Chiyoda Corporation (all three from Japan), SK Geo Centric (South Korea), Indorama Ventures (Thailand), India Glycols (India) and Neste (Finland). The polyester fiber produced from the project is planned to be used by Goldwin for a part of THE NORTH FACE products including sports uniforms in July 2024. After that, the launch of further products and brands of Goldwin will be considered.The seven companies apply a mass balancing approach*** to ensure credible traceability of material streams throughout the supply chain and will jointly continue to proactively promote the de-fossilization of materials to contribute to a more sustainable society.“This consortium has great significance as it is the first case where multiple companies gather under the same of reducing carbon by making sustainable polyester that will eventually be used in clothing products in the final stage,” said an official from SK Geo Centric. “This is just the beginning. We will strive to keep creating greater synergy through cooperation with global companies.” *World’s first: This refers to the first time CCU para-xylene (direct synthesis from CO) is applied and also to the first time a polyester is made without the use of fossil materials in collaboration among upstream material companies and a downstream apparel company through mass balancing, according to the companies’ research.**CCU para-xylene: Regarding the production of para-xylene derived from CO2 as a raw material, the University of Toyama, HighChem Company Limited, Nippon Steel Engineering Co. Ltd., Nippon Steel Corporation, Chiyoda Corporation and Mitsubishi Corporation were awarded in 2020 as a NEDO‘s project (New Energy and Industrial Technology Development Organization) "Technology Development for Carbon Recycling and Next Generation Thermal Power Generation/Technology Development for CO2 Emission Reduction and Effective Utilization" and are conducting the joint research and development. This project is to supply CO2-derived para-xylene as a trial, which was produced during the operation process of a pilot plant installed in Chiyoda Corporation's Koyasu Research Park since March 2022.***Mass balance / Mass balancing approach: A process that tracks the amount and sustainability characteristics of materials and enables allocation of such to a specific portion of the product in proportion to the input of the raw materials with sustainability characteristics, when they are mixed with other materials in the process of manufacturing and distribution of products.[Photo] The establishment of a sustainable polyester supply chain by the consortium formed by SK Geo Centric in collaboration with global petrochemical, fiber, and clothing companies READ MORE |
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"Pro bono cases are how we, as a firm, show that we care about more than just ourselves.”– From TV series “Suits” Season 1, episode 1If you are a fan of legal series, you might be familiar with the term “pro bono.” Originally, it referred to legal work service provided by lawyers free of charge to support individuals or organizations in need, promoting social justice and community welfare. Nowadays, pro bono has expanded beyond the legal field to various areas such as healthcare, education, business management, marketing, public relations, and IT support. Accordingly, the term is used to indicate specialist services provided by any professional voluntarily and free or charge to support a community, a group or an individual. 🔍 Pro BonoA shortened term of "pro bono public" (English: "for the public good"), a Lain phrase for professional work undertaken voluntarily and without payment.*Based on Wikipedia explanationIn 2009, SK Group became the first Korean conglomerate in South Korea to launch a business consulting volunteer group named “SK Probono” to support the growth of social enterprises while providing opportunities for its members to share experiences and professional skills. At present, it is the largest pro bono pool in South Korea. From the launch of SK Probono in 2009 until the end of last year, a total of 14,021 SK members have participated in volunteer consulting work for 2,965 companies in diverse approaches.Specifically, this year, SK Innovation affiliates are collaborating with the SK Probono Office to operate pro bono activities more systematically. We spoke with Hong Hana, a CSR Manager at SK Innovation who oversees the company’s pro bono operation, to learn more about SK Innovation affiliates’ plans and activities related to skills-based volunteering and the meaning behind.Q1. What makes SK Innovation's pro bono activities this year different from before?The key feature of SK Probono is its focus on social enterprises that give positive impact by considering various social values. By providing our members’ skills and experience to both existing and preliminary social enterprises, we support their stable growth and development, contributing to positive changes across society.Members of SK Innovation affiliates voluntarily have been participating in SK Probono activities for a while. Previously, our members applied for and participated in pro bono activities individually. However, starting this year, we will strengthen collaboration between the SK Probono Office and SK Innovation affiliates to operate more systematically and proactive.Consequently, in the first half of this year, more than 300 employees of SK Innovation affiliates have involved in pro bono activities. This is the highest number among SK member companies.Q2. What are the positive impacts of SK Probono activities?SK Probono activities act as a bridge between the members of SK Innovation affiliates and social enterprises, offering growth opportunities for both sides. The members can strengthen their work competency by engaging in solving social issues, and feel a sense of pride of their contribution to the social enterprises, which receive consultation from experienced professionals."SK Probono activities serve as a bridge, connecting the expertise of our members with the passion of social enterprises. This creates opportunities for growth for both the participating members and the social enterprises receiving the support. Our members can enhance their professional skills by engaging in social problem-solving, while also boosting their sense of pride by contributing to the growth of social enterprises."Social enterprises often lack resources such as manpower, infrastructure, specialized knowledge or technology. Therefore, when members from different fields within SK Innovation affiliates share their practical experience and professional expertise accumulated in their respective roles, and provide multifaceted guidance, they can significantly contribute to strengthening the business models and foundations of these enterprises. This, in turn, serves as meaningful support for the growth of these enterprises. Ultimately, both the participating members and the social enterprises grow and develop, leading to the creation of greater social value and positive outcomes.Q3. How to join SK Probono and what types of activities are available?Social enterprises and preliminary social enterprises can apply for consulting services through the official SK Probono website (https://www.skprobono.com) at any time. Based on the applications, the SK Probono Office selects target social enterprises for consulting and then recruits SK members to participate in pro bono activities through the intranet or other channels. SK Probono's activities can support the growth of businesses in various ways, as there are 23 consulting fields. These include law, tax/finance/accounting, public relations (PR) and marketing strategy, human resources (HR), and so on. The consulting services offered by SK Probono can be broadly categorized into four main types:The first category is project-based consultation, where a group of pro bono professionals with specialized skills provides intensive and continuous support to social enterprises and preliminary social enterprises over a set period. Fields such as industrial fire safety and health safety, which require specialized skills and expertise, are exclusively handled through this type of consultation. The second category is individual consultation, which pairs companies that have specific needs with professionals in the relevant fields as an one-on-one consulting. The third category is usability testing, where the members remotely evaluate company's new product or service and provide feedback and suggestions for improvement. SK Innovation members test mobile apps, websites, and new or soon-to-be-released products created by social enterprises. The results are then shared with the enterprises, providing them with valuable insights for improving their services or products.The last one is educational consultation, where members share their practical skills and expertise online with multiple social enterprises and preliminary social enterprises.Q4. What are some of the notable SK Probono activities conducted by SK Innovation affiliates this year?This year, as it marks the official start of SK Innovation affiliates' pro bono activities, we are focusing on two types of consultations: project-based consultation and usability testing.First, as a representative example of project-based consultation, SK Innovation's Ulsan Complex (Ulsan CLX) is currently engaged in pro bono activities aimed at improving the safety environment of social enterprises in the Ulsan region. On June 11, Ulsan CLX held a launch ceremony for pro bono work for fire safety with the consulting target companies: Sanggae sheltered workshop for people with disabilities, Usisan, Marine Innovation, Jungin day care center for people with disabilitie, and Deobulup.Starting from this point, Ulsan CLX plans to support the growth of a total of five social enterprises by providing comprehensive consultation services. This includes worker safety training, identification and elimination of risk factors in process equipment, and guidance on the Occupational Safety and Health Act and the Act on the Safety Control of Hazardous Substances. Additionally, SK Innovation’s Institute of Environmental Science & Technology in Daejeon is set to launch a fire safety consultation group and a plastic recycling consultation group, with plans to begin full-scale support activities for social enterprises starting in the fourth quarter of this year.Meanwhile, in the first half of this year, SK Innovation affiliates recruited members for usability testing across three different sessions. Each time an announcement for participation in the usability testing of social enterprise products was posted on the intranet, it quickly filled up due to the enthusiastic response from the members. Approximately 100 members per session, totaling around 300 members so far, have meticulously tested the products and services of social enterprises and provided thoughtful feedback for improvement. The social enterprises that received the consultations have expressed that the testing results from SK Innovation members have been extremely helpful, which made me proud as the coordinator. As the number of companies applying for usability testing continues to increase, we plan to continue these activities in the second half of the year.Q5. Lastly, do you have any final remarks?As mentioned earlier, SK Innovation affiliates are focusing on project-based consulting and usability testing this year. Given the vast range of skills and expertise our members possess, as well as their passion for solving social issues, we will do our utmost to support pro bono activities that align with each individual's specialization. In closing, I would like to ask for your continued interest and participation in SK Pro Bono activities, as we all work together to create a happier society for everyone. Stand together, make it better!■ Related articles - Social Venture Marine Innovation signed a contract with French brand ARGO to export eco-friendly plates and cups- Montsenu, Grape Lab, Usisan (social enterprises supported by SK Innovation) shine at 2021 P4G Seoul Summit
2024. 07. 16
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[Interview] “Growing together with social enterprises through pro bono,” stories shared by SK Innovation CSR manager
"Pro bono cases are how we, as a firm, show that we care about more than just ourselves.”– From TV series “Suits” Season 1, episode 1If you are a fan of legal series, you might be familiar with the term “pro bono.” Originally, it referred to legal work service provided by lawyers free of charge to support individuals or organizations in need, promoting social justice and community welfare. Nowadays, pro bono has expanded beyond the legal field to various areas such as healthcare, education, business management, marketing, public relations, and IT support. Accordingly, the term is used to indicate specialist services provided by any professional voluntarily and free or charge to support a community, a group or an individual. 🔍 Pro BonoA shortened term of "pro bono public" (English: "for the public good"), a Lain phrase for professional work undertaken voluntarily and without payment.*Based on Wikipedia explanationIn 2009, SK Group became the first Korean conglomerate in South Korea to launch a business consulting volunteer group named “SK Probono” to support the growth of social enterprises while providing opportunities for its members to share experiences and professional skills. At present, it is the largest pro bono pool in South Korea. From the launch of SK Probono in 2009 until the end of last year, a total of 14,021 SK members have participated in volunteer consulting work for 2,965 companies in diverse approaches.Specifically, this year, SK Innovation affiliates are collaborating with the SK Probono Office to operate pro bono activities more systematically. We spoke with Hong Hana, a CSR Manager at SK Innovation who oversees the company’s pro bono operation, to learn more about SK Innovation affiliates’ plans and activities related to skills-based volunteering and the meaning behind.Q1. What makes SK Innovation's pro bono activities this year different from before?The key feature of SK Probono is its focus on social enterprises that give positive impact by considering various social values. By providing our members’ skills and experience to both existing and preliminary social enterprises, we support their stable growth and development, contributing to positive changes across society.Members of SK Innovation affiliates voluntarily have been participating in SK Probono activities for a while. Previously, our members applied for and participated in pro bono activities individually. However, starting this year, we will strengthen collaboration between the SK Probono Office and SK Innovation affiliates to operate more systematically and proactive.Consequently, in the first half of this year, more than 300 employees of SK Innovation affiliates have involved in pro bono activities. This is the highest number among SK member companies.Q2. What are the positive impacts of SK Probono activities?SK Probono activities act as a bridge between the members of SK Innovation affiliates and social enterprises, offering growth opportunities for both sides. The members can strengthen their work competency by engaging in solving social issues, and feel a sense of pride of their contribution to the social enterprises, which receive consultation from experienced professionals."SK Probono activities serve as a bridge, connecting the expertise of our members with the passion of social enterprises. This creates opportunities for growth for both the participating members and the social enterprises receiving the support. Our members can enhance their professional skills by engaging in social problem-solving, while also boosting their sense of pride by contributing to the growth of social enterprises."Social enterprises often lack resources such as manpower, infrastructure, specialized knowledge or technology. Therefore, when members from different fields within SK Innovation affiliates share their practical experience and professional expertise accumulated in their respective roles, and provide multifaceted guidance, they can significantly contribute to strengthening the business models and foundations of these enterprises. This, in turn, serves as meaningful support for the growth of these enterprises. Ultimately, both the participating members and the social enterprises grow and develop, leading to the creation of greater social value and positive outcomes.Q3. How to join SK Probono and what types of activities are available?Social enterprises and preliminary social enterprises can apply for consulting services through the official SK Probono website (https://www.skprobono.com) at any time. Based on the applications, the SK Probono Office selects target social enterprises for consulting and then recruits SK members to participate in pro bono activities through the intranet or other channels. SK Probono's activities can support the growth of businesses in various ways, as there are 23 consulting fields. These include law, tax/finance/accounting, public relations (PR) and marketing strategy, human resources (HR), and so on. The consulting services offered by SK Probono can be broadly categorized into four main types:The first category is project-based consultation, where a group of pro bono professionals with specialized skills provides intensive and continuous support to social enterprises and preliminary social enterprises over a set period. Fields such as industrial fire safety and health safety, which require specialized skills and expertise, are exclusively handled through this type of consultation. The second category is individual consultation, which pairs companies that have specific needs with professionals in the relevant fields as an one-on-one consulting. The third category is usability testing, where the members remotely evaluate company's new product or service and provide feedback and suggestions for improvement. SK Innovation members test mobile apps, websites, and new or soon-to-be-released products created by social enterprises. The results are then shared with the enterprises, providing them with valuable insights for improving their services or products.The last one is educational consultation, where members share their practical skills and expertise online with multiple social enterprises and preliminary social enterprises.Q4. What are some of the notable SK Probono activities conducted by SK Innovation affiliates this year?This year, as it marks the official start of SK Innovation affiliates' pro bono activities, we are focusing on two types of consultations: project-based consultation and usability testing.First, as a representative example of project-based consultation, SK Innovation's Ulsan Complex (Ulsan CLX) is currently engaged in pro bono activities aimed at improving the safety environment of social enterprises in the Ulsan region. On June 11, Ulsan CLX held a launch ceremony for pro bono work for fire safety with the consulting target companies: Sanggae sheltered workshop for people with disabilities, Usisan, Marine Innovation, Jungin day care center for people with disabilitie, and Deobulup.Starting from this point, Ulsan CLX plans to support the growth of a total of five social enterprises by providing comprehensive consultation services. This includes worker safety training, identification and elimination of risk factors in process equipment, and guidance on the Occupational Safety and Health Act and the Act on the Safety Control of Hazardous Substances. Additionally, SK Innovation’s Institute of Environmental Science & Technology in Daejeon is set to launch a fire safety consultation group and a plastic recycling consultation group, with plans to begin full-scale support activities for social enterprises starting in the fourth quarter of this year.Meanwhile, in the first half of this year, SK Innovation affiliates recruited members for usability testing across three different sessions. Each time an announcement for participation in the usability testing of social enterprise products was posted on the intranet, it quickly filled up due to the enthusiastic response from the members. Approximately 100 members per session, totaling around 300 members so far, have meticulously tested the products and services of social enterprises and provided thoughtful feedback for improvement. The social enterprises that received the consultations have expressed that the testing results from SK Innovation members have been extremely helpful, which made me proud as the coordinator. As the number of companies applying for usability testing continues to increase, we plan to continue these activities in the second half of the year.Q5. Lastly, do you have any final remarks?As mentioned earlier, SK Innovation affiliates are focusing on project-based consulting and usability testing this year. Given the vast range of skills and expertise our members possess, as well as their passion for solving social issues, we will do our utmost to support pro bono activities that align with each individual's specialization. In closing, I would like to ask for your continued interest and participation in SK Pro Bono activities, as we all work together to create a happier society for everyone. Stand together, make it better!■ Related articles - Social Venture Marine Innovation signed a contract with French brand ARGO to export eco-friendly plates and cups- Montsenu, Grape Lab, Usisan (social enterprises supported by SK Innovation) shine at 2021 P4G Seoul Summit
2024. 07. 16
SK Innovation to explore future energy growth strategies at Global Forum in the U.S.
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[Battery Explorer] ② The 4 key components of a secondary battery
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SK Innovation's MSCI ESG rating upgraded to AA, recognized as a global leader
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[Energy Tidbits] From “Light and Salt” to "Light and Petroleum,” discovering the secrets behind “treasure hunts” through the evolution of drilling techniques
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