SM Kukil Seeks to Acquire ESS, Semiconductor Equipment Maker Daejin Machinery

Daejin Machinery Supplies Battery Production Equipment for LG Energy Solution's ESS

SM Kukil, an affiliate of SM Group, is seeking to diversify its business by pursuing the acquisition of Daejin Machinery, a company specializing in energy storage systems (ESS) and semiconductor manufacturing equipment.

SM Kukil said on Oct. 23 that it had been selected as the preferred bidder for the acquisition of Daejin Machinery.

Founded in 1980, Daejin Machinery specializes in industrial equipment, producing automated assembly systems for secondary battery modules and packs, as well as ingot growers used to manufacture semiconductor wafers. In particular, it supplies battery production equipment for ESS to LG Energy Solution, with related sales accounting for about 70% of its total revenue.

Automated assembly systems for battery modules and packs are used in processes that assemble multiple battery cells into modules and packs. Ingot growers produce silicon single crystals, the raw material for semiconductor wafers. Daejin Machinery has built up technological expertise and a business base in battery production equipment and semiconductor manufacturing equipment.

The acquisition is part of SM Kukil's strategy to restructure its business portfolio. The company plans to expand beyond its existing focus on paper products, including industrial specialty paper, into the secondary battery and semiconductor equipment sectors.

SM Kukil has recently changed its name from Kukil Paper and is moving quickly to secure new growth drivers, including by pursuing a merger with Handuk Iron Mining Industry, the country's only iron ore producer.

The company also expects to create synergies with the group's battery business. SM Kukil plans to strengthen cooperation with the battery business division of SM Bexel, which produces batteries and specialty batteries for use in areas such as defense, drones and ESS, to enhance its competitiveness.

An SM Group official said, "Through the acquisition of Daejin Machinery, we will step up our entry into new markets, including ESS batteries and semiconductor wafer production and processing equipment, while expanding synergies with SM Bexel, which already operates a battery business. We will develop advanced industrial equipment as a future growth engine and continue to increase corporate value."

This content was produced with the assistance of AI translation services.