Sales also fell by 30%… Battery sales surpassed KRW 1 trillion for the first time
Established the largest capacity Europe 3 plant in Hungary
(Seoul = Yonhap News) Reporter Kim Young-shin = SK Innovation[096770]Last year, the new coronavirus infection (Corona 19) caused a record-high deficit of 2.568.8 billion won per year.
This is the result of a significant deterioration in the performance of the petroleum and chemical sector, the existing flagship business, due to the Corona 19 shock. The battery division, a new business, has grown significantly with sales exceeding KRW 1 trillion for the first time ever.
Based on this growth base, SK Innovation will add a new plant, the largest of its global production bases, in Hungary.
SK Innovation announced on the 29th that last year’s annual operating deficit amounted to 2.568.8 billion won, which turned into a deficit compared to the previous year. Sales fell 30.7% to 34.16 trillion won.
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By business, the petroleum business recorded annual sales of 22,637.9 billion won and an operating loss of 2,222.8 billion won, and the chemical business recorded sales of 7,541 billion won and an operating loss of 121.2 billion won.
The lubricant business had sales of 2.371.3 billion won and operating profit of 266.2 billion won, and the oil development business had sales of 59.3 billion won and operating loss of 4.8 billion won.
The battery business surpassed 1 trillion won in sales for the first time with annual sales of 1.6 trillion won. Compared to the previous year (690.3 billion won), it has more than doubled. The operating loss of the battery business has also been reduced to 425 billion won.
In the materials business, it achieved a profit of 125.9 billion won thanks to an increase in sales of lithium-ion battery separators (LiBS).
In the fourth quarter alone, the battery business recorded a quarterly high of KRW 4972 billion. However, operating loss in the fourth quarter was KRW 18.9 billion due to the initial cost of building overseas factories.
SK Innovation explained, “Amidst the petroleum and chemical business stagnation in the aftermath of Corona 19, the battery business achieved trillions of sales for the first time.”
SK Innovation announced that the battery business, which is the leading player of growth, is on a full-scale growth trajectory. The first plant in Europe (7.5GWh annually) in Hungary, which started mass production from last year, and the plant in Changzhou, China (7.5GWh), are operating stably.
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Plants in Yancheng and Huizhou in China will start operating in earnest with an additional 20GWh production scale this year. This year’s total production capacity is 40GWh, which will increase by about four times compared to the end of 2019.
SK Innovation plans to mass-produce the second plant in Hungary (9.8GWh) and the first plant in Georgia (9.8GWh), which are currently under construction, from the first quarter of next year. The second plant in the US (11.7GWh) is also under construction with the aim of mass production in 2023.
In addition, SK Innovation announced on the same day that it has decided to establish an additional 3 plant in Hungary by investing 1.2 trillion won. The production capacity of the third plant in Hungary is expected to be the highest among global production bases.
SK Innovation announced that it will have a production capacity of 85GWh in 2023 and more than 125GWh in 2025 through new and expanded battery factories.
The plan is to further increase the production capacity of 100GWh in 2025, which was the previous target, and to continue aggressive investment in line with the rapid growth of electric vehicles.
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In the material business, we are continuing to expand overseas facilities for separators. Domestic factories in Cheongju and Jeungpyeong and factories in China were in operation at the end of last year and have an annual production scale of 870 million square meters. It plans to operate overseas factories such as China and Poland sequentially to expand its production capacity to 1.37 billion m2 by the end of this year and 1.87 billion m2 by 2023.
SK Innovation decided not to pay dividends last year. This is taking into account the financial structure resulting from worsening earnings and expanding investment in the battery business.
The company explained, “It does not pay dividends, but shareholder-oriented management is an important value,” and said, “We are establishing a plan to return mid- to long-term shareholders through management performance and new business.”
General President Kim Joon said, “We will pursue total and fundamental innovation with an eco-friendly focus not only in new businesses but also in existing businesses this year.”
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2021/01/29 10:44 sent