Samsung Sells Water Treatment Business to Lotte
Published on by Water Network Research, Official research team of The Water Network in Business
Samsung SDI signed a contract with Lotte Chemical in Feb. to sell its water treatment membrane business
A membrane is a selective barrier to filter unwanted particles from liquids and gases, and it is widely used in the water treatment, secondary battery, and medical care sectors as a core material in the future.
An official from Samsung SDI said, "We decided to sell our water treatment business in order to focus more on our major business material sector as part of choice and concentration. We had started the negotiation with Lotte from the second half of last year." An official from Lotte Chemical also said, "We have concluded the contract with Samsung to take over the water treatment membrane business and are currently finishing transfer work, including facilities."
Samsung completely pulled out of its water treatment business five years after Cheil Industries tapped into the business in March 2010. At that time, Cheil Industries saw a great chance of growth potential of the water treatment membrane sector, which was closely related to its technology in the electronic materials sector, and announced its plan to foster it as a new growth engine.
As part of reorganizing the group's business structure which had pushed ahead from the end of 2013, Samsung sought a buyer in the water treatment sector in the process of selling the non-core businesses of its affiliates. Immediately after the group merged Cheil Industries and Samsung SDI in July last year, Samsung had promoted the sale of its water treatment business.
As Lotte Chemical aggressively showed an intention to buy the business in the process, the sales contract was competed seven months after starting negotiations. From 2011, Lotte Chemical has managed its exclusive research team to tap into the water treatment membrane business and has been accelerating R&D at Daedeok Research Institute.
Source: Business Korea
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