SM Kookil, the manufacturing and services affiliate of SM Group formerly known as Kookil Paper, said on the 23rd that it has been selected as the preferred bidder to acquire Daejin Machinery, a maker of production equipment for secondary batteries and semiconductors. SM Kookil, which recently changed its name, has been pushing to secure growth engines beyond its existing paper business, including a merger with Handuk Iron Ore, the country's only iron ore producer.
Founded in 1980, Daejin Machinery specializes in industrial production equipment, building automated assembly lines for secondary battery modules and packs as well as ingot growers used to make semiconductor wafers. The company has supplied battery production equipment for energy storage systems to LG Energy Solution, with related sales accounting for about 70% of its total revenue, establishing a foothold in the ESS equipment market.
Through the acquisition, SM Kookil plans to overhaul a business structure centered on paper products such as industrial specialty paper and expand into production equipment for secondary batteries and semiconductors. The company also aims to maximize synergies within the group by linking the business with affiliate SM Vexel, which produces batteries and specialty cells for defense, drones and ESS applications.
"We will move ahead in earnest with entering and targeting new businesses such as ESS batteries and equipment for producing and processing semiconductor wafers," an SM Group official said. "We will also raise synergies with SM Vexel, which runs a battery business, to lay the groundwork for medium- to long-term growth."