SK Geo Centric Put Petrochemical Assets Up for Sale
The company has engaged advisors to divest packaging material units in the United States and France.
Updated on Sept. 24, 2026 in Business Strategy
Live Poll
Does the sale of international business units generally signal improved corporate stability for the parent company?
SK Geo Centric has decided to sell its international petrochemical subsidiaries located in the United States and France. The divestment includes specialized packaging material businesses previously acquired from major chemical firms.
Why it matters
The decision follows a decline in performance for these business segments due to intense global oversupply. Competition from Chinese firms and other rivals has created significant pressure, prompting the company to reassess its holdings.
The assets for sale comprise the EAA and PVDC businesses acquired from Dow Chemical in 2017 and the functional polyolefin business purchased from Arkema in 2019. These segments experienced a surge in demand during the Covid-19 pandemic before facing recent downturns.
The players
SK Geo Centric
This is a South Korean chemical company and a subsidiary of SK Group that specializes in advanced materials and recycling technologies.
Dow Chemical
This is a major American multinational chemical corporation that was the previous owner of the EAA and PVDC business assets.
Arkema
This is a French specialty chemicals and advanced materials company that formerly owned the functional polyolefin business sold to SK.
Korea Petrochemical Ind. Co.
This is a prominent South Korean manufacturer of petrochemical products that is currently a potential merger partner for SK Geo Centric.
The details
SK Geo Centric is currently collaborating with international advisors to approach potential buyers for these foreign operations. The shift is part of a broader strategy that may also see the company accelerate a merger with Korea Petrochemical Ind. Co.
Timeline
2017: SK acquired EAA and PVDC businesses from Dow Chemical.
2019: SK purchased the functional polyolefin business from Arkema.
Monday, September 21, 2026: Investment banking sources reported the company's divestment plans.
Market Landscape
This divestment mirrors a wider trend of consolidation and portfolio restructuring among chemical giants navigating global oversupply. By shedding these international assets, the company aims to sharpen its focus and potentially facilitate a domestic merger with Korea Petrochemical Ind. Co.
For the average client or partner, this transition may lead to shifts in long-term supply chain stability and potential changes in customer service contacts. These structural moves are part of an effort to ensure the company remains competitive in a cooling market.
The takeaway
Companies are increasingly divesting legacy assets that were highly profitable during the pandemic but are now struggling under current market conditions. This trend highlights the importance of agility in capital allocation when facing persistent global competition.
Further reading
Learn more about the latest shifts in Business Strategy that are shaping global corporate portfolios.
Source note: This article includes information reported by Pulse.
Live Poll
Does the sale of international business units generally signal improved corporate stability for the parent company?
