SK Energy to spin off petrochemical units to boost stagnating bottom line

22-Jun-10

SK Energy plans to spin off petrochemical divisions as independent subsidiaries in January 2011, to boost bottom line since revenue streams from conventional petrochemical markets show signs of saturation. SK Energy will focus on research and resources developments while petroleum, chemical products and lubricants division will be assigned to its three affiliates ? SK Lubricant and two entities to be established. This is a very exceptional phenomenon in Korea where large-sized conglomerates (chaebol), tend to amalgamate almost every business operation.