SK Group plans to integrate SK Inc.'s semiconductor processing and distribution company, Essencore, as well as its industrial gas company, SK materials airplus, into a subsidiary of SK ecoplant.

Previously, due to deteriorating financial conditions within the group, South Korea's SK Group initiated a reform and restructuring plan, considering the possibility of streamlining or adjusting its loss-making businesses.

Essencore, a subsidiary of SK Inc., acquires DRAM supplies from SK hynix and processes them into products such as SD cards and USB drives for distribution. Leveraging a strong supply chain and sales network, the company has maintained stable performance. Despite last year's semiconductor industry downturn, Essencore reported an operating profit of 59.4 billion Korean won (approximately $43 million USD).

SK materials airplus, also a subsidiary of SK Inc., manufactures industrial gases used in semiconductor manufacturing and supplies them to companies like SK hynix. Similar to Essencore, the company is regarded for its reliable supply chain and stable performance.

Some industry insiders speculate that Essencore and SK materials airplus, seen as "profitable companies" within the group, are being integrated to strengthen SK ecoplant's financial structure, possibly in preparation for an IPO.

Industry experts suggest that the integration of Essencore and SK materials airplus could generate significant synergies. SK ecoplant, focusing on engineering, procurement, and construction (EPC) services, may expand its business by undertaking EPC projects previously handled by SK materials airplus. Additionally, there could be collaboration opportunities, such as SK ecoplant sourcing products from its electronic waste recycling subsidiary, SK tes, and from Essencore.