[Alpha Biz= Reporter Kim Jisun] SKIET has reported a loss for the second quarter of the year due to a temporary slowdown in electric vehicle (EV) demand, known as the "Chasm." The company plans to improve its performance through long-term supply contracts with North American firms and by enhancing its financial stability through asset sales, including its Cheongju plant and FCW (Flexible Cover Window) business.
For Q2, SKIET posted consolidated sales of 61.6 billion KRW and an operating loss of 58.7 billion KRW, a significant decline from the previous year. The sales dropped by 59.4%, and the operating profit turned negative.
The downturn is attributed to reduced production by SKIET's major customer, battery cell manufacturer SK On, leading to a decrease in membrane supply. The average operating rate of SKIET’s domestic plants is in the early 30% range, while its plants in China and Poland operate at early 20% and early 40% levels, respectively. A SKIET representative noted that the low plant utilization rates and fixed cost burdens have hindered performance improvement.
Despite this, SKIET expects gradual sales improvements starting in the second half of the year, driven by new customer shipments and increased demand. The company is working to expand its customer portfolio by negotiating long-term supply contracts with more than five battery cell manufacturers and global automakers in North America. Securing these contracts could lead to long-term performance improvement.
Decisions regarding new investments in North American membrane factories will be made after the U.S. presidential election, likely in the first quarter of 2025. SKIET is currently considering entering the market with coating equipment only. The demand for membranes in the North American market is estimated to reach 5 to 7 billion KRW by 2030.
To enhance financial stability, SKIET is examining ways to reduce fixed costs associated with plant operations and is considering asset sales, including the Cheongju plant and the FCW business. SKIET had previously announced plans to cease its FCW business and focus on the membrane business, which it aims to finalize in the first half of the year.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
