Exclusive
Hansol Technics Acquires SI Materials… Will This Bring Changes to the ‘Two Families Under One Roof’?

[비즈한국] It has been confirmed that the Hansol Group recently acquired SI Materials, a recycling company. The acquiring entity, Hansol Technics004710, is a subsidiary of Hansol Holdings004150. The Hansol Group is largely divided into two main axes: Hansol Holdings and Hansol Chemical014680. Although they are both Hansol Group affiliates, Hansol Holdings and Hansol Chemical differ in terms of shareholder composition and management. Recently, Hansol Chemical has shown interest in the recycling business. Hansol Holdings maintains that their business areas do not overlap because Hansol Chemical is not currently engaged in recycling-related operations.

According to BizHankook’s coverage, Hansol Technics recently acquired SI Materials, a company based in Iksan, Jeollabuk-do. SI Materials recovers and recycles silicon byproducts generated from the semiconductor and solar power industries to supply them as raw materials for secondary battery products. Hansol Technics aims to leap forward as a company specialized in upcycling (recycling) by expanding its business scope through SI Materials.

Hansol Technics, which acquired SI Materials, is a subsidiary of Hansol Holdings. Hansol Group Chairman Cho Dong-gil currently serves as an executive director at Hansol Technics. Therefore, it is interpreted that Chairman Cho Dong-gil's intentions were reflected in the acquisition of SI Materials. The businesses carried out by Hansol Holdings' subsidiaries include paper (Hansol Paper213500), logistics (Hansol Logistics009180), IT (Hansol PNS), and electrical/electronic components (Hansol Technics). It has not had much connection with the recycling business.

Recycling-related businesses are typically conducted by petrochemical companies, as recycling technology is highly related to chemical technology. Of course, Hansol Technics is also involved in the precision machining of semiconductor components through its subsidiary, Hansol Iones, so there is some business connection with SI Materials. An official from Hansol Holdings also explained, "We acquired SI Materials based on its relevance to the semiconductor materials business we have been conducting through companies like Hansol Iones."

Meanwhile, Hansol Group affiliate Hansol Chemical is also showing interest in the recycling business. Hansol Chemical is participating in a government-funded project led by the Ministry of Trade, Industry and Energy to develop technology for manufacturing high-energy density composite electrodes based on waste silicon. The goal is to develop high-performance silicon-based anode materials by recycling waste silicon to overcome the energy density limitations of lithium secondary batteries, thereby building a sustainable secondary battery industry ecosystem.

Although Hansol Holdings and Hansol Chemical are affiliates within the same Hansol Group, they effectively operate independently when looking at their management and shareholder composition. Cho Dong-hyuk, Chairman of Hansol Chemical and the eldest son of the late Hansol Group advisor Lee In-hee, leads Hansol Chemical, while the third son, Hansol Group Chairman Cho Dong-gil, leads Hansol Holdings.

Chairman Cho Dong-gil is the largest shareholder of Hansol Holdings, but holds only a 0.31% stake in Hansol Chemical. Chairman Cho Dong-hyuk is also a major shareholder of Hansol Chemical but holds no shares in Hansol Holdings. Since the National Pension Service, the largest shareholder of Hansol Chemical, does not participate in management, Chairman Cho Dong-hyuk effectively acts as the largest shareholder of Hansol Chemical. However, Hansol Chemical does hold a 4.41% stake in Hansol Holdings.

The business world has long speculated about a potential separation of Hansol Holdings and Hansol Chemical, but the Hansol Group has consistently denied rumors of a spin-off. Under these circumstances, if Hansol Chemical enters the recycling business, there is a possibility of overlapping business areas within the Hansol Group.

However, it is reported that there is no particular friction within the Hansol Group as of yet. The previously mentioned Hansol Holdings official stated, "Our business areas do not overlap with those of Hansol Chemical."