On May 21, SK On announced that it has rebranded the former BlueOval SK Tennessee plant as SK On Tennessee and has entered a phase of sole operation.
As a result of this restructuring, SK On will fully own and operate the Tennessee plant, while the two Kentucky plants under BlueOval SK will remain owned and operated by Ford.
SK On anticipates that the conclusion of the joint venture will reduce its debt burden by approximately 54 trillion won. Given the current high-interest environment, the company expects to save about $18 million (approximately 27 billion won) annually in interest costs. Additionally, the annual depreciation costs associated with the Kentucky plants, estimated at around 33 billion won, are also expected to decrease.
A representative from SK On stated, "This restructuring of the joint venture will strengthen our financial structure and enhance the efficiency of our production operations in the U.S. We aim to actively respond to changes in the North American market based on our newly secured independent production base."
In the first quarter of this year, SK On reported revenues of 1.7912 trillion won and an operating loss of 349.2 billion won. However, with the recent acquisition of 284 megawatts (MW) out of a total of 565 MW in the bidding for the second ESS (Energy Storage System) central contract market, combined with the end of the joint venture, the company expects to see improvements in its performance both domestically and internationally.
* This article has been translated by AI.
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