SK Energy Co., a unit of South Korean oil refiner and battery maker SK Innovation Co., is spinning off its crude oil storage and shipment business to launch an independent oil storage and logistics company.
SK Energy, Korea’s largest oil refiner, said on Monday it approved the spin-off plan at a board meeting last Friday.
The new entity, tentatively named SK Tank Terminal Co., will officially launch on Jan. 1 after approval at its extraordinary shareholders’ meeting later this month.
SK Tank Terminal will be wholly owned by SK Innovation.
The SK Energy business has been handling the storage and shipments of crude oil and petrochemical products within the company. It also operates storage tanks at SK Energy’s complex in Ulsan and dock facilities near the port city.
TO EXPAND LOW-CARBON PRODUCT BUSINESS
SK Energy said it is spinning off the business to secure operational competitiveness and seek new business opportunities through independent decision-making at the new entity.
Over the long term, the separation will help SK Energy efficiently respond to increasing demand for low-carbon products, it said.
SK Tank Terminal, the new company, will expand its business scope so that it will also store and ship low-carbon raw materials and products, including sustainable aviation fuel (SAF), and lease storage facilities to its customers to enhance profitability, according to SK Energy.
“We have expertise in tank terminal operations that we have accumulated over the past 60 years. The proposed restructuring will allow us to pursue sustainable growth through fast decision-making based on expertise as an independent corporation,” said an SK Energy official.
Write to Mi-Sun Kang at [email protected]
In-Soo Nam edited this article.
