SK Chemicals said Tuesday it is moving to finalize the sale of its cash cow bioenergy business to make new investments in green materials.

The company plans to sell its bioenergy business to private equity fund Hahn & Co. for 382.5 billion won ($309.4 million). It had suspended the operation of bioenergy business on Feb. 5, excluding the sector from its first-quarter earnings report.

“To enhance its value and secure funds through mergers and acquisitions, we decided to sell off the bioenergy business. We aim to take a leap forward as a green materials company,” a company official said.

SK Chemicals’ bioenergy business generated revenue of 316.2 billion won last year, taking up 22 percent of its total revenue of 1.4 trillion won. As of 2018, the company had a market share of 33.4 percent in the domestic biodiesel market.

After the sale, SK Chemicals’ green chemical department plans to focus on environmentally friendly plastic material PETG and BPA-free PCT. 

By Kim Byung-wook (kbw@heraldcorp.com)