SKC Co., the world’s biggest maker of polyester film used in solar cells and display panels, expects sales to surge 79 percent by 2012 as the company adds capacity to meet demand for renewable energy and televisions.
Revenue may rise to 2.64 trillion won ($2.2 billion) in three years from 1.47 trillion won in 2009, Chief Executive Officer Park Jang Suk said in an interview at the company’s headquarters in Seoul yesterday. Sales, including those of its units, will probably reach 1.8 trillion won this year, he said.
“SKC and its units plan to invest about 900 billion won over the next three years,” Park, 55, said. “Particularly, we will focus on film for solar power, which will grow sharply.”
The unit of a unit of SK Group, South Korea’s third-largest conglomerate, has surged 57 percent this year as investors bet demand for solar-power equipment will increase as governments worldwide seek to reduce emissions blamed for global warming. First Solar Inc., the world’s largest renewable energy company by market value, said in February the market for solar modules will climb 36 percent to 7,500 megawatts this year.
Shares of SKC advanced 1.4 percent to 29,700 won as of 11:15 a.m. in Seoul trading. The stock is the eighth-best performing stock on the Kospi 200 Index.
Demand for flat-panel televisions is also boosting sales SKC’s polyester film, which accounts for 60 percent of the company’s operating profit. Chemicals including propylene oxide used in mattresses and seat cushions, make up the rest.
Global shipments of liquid-crystal display televisions may rise 24 percent to more than 180 million units in 2010, Austin, Texas-based DisplaySearch said in March.
Sales of solar-cell film may rise more than sevenfold to 270 billion won by 2012 from 35 billion won last year, Park said. SKC Solmics Co., a unit of the company, plans to produce solar- cell ingots and wafers, he said.
SKC Solmics said in February it will spend 32.7 billion won for a 50-megawatt ingot production facility in Pyeongtaek, south of Seoul, with commercial production due to start in November.
Shares of Woongjin Energy Co., a South Korean solar-cell ingots producer, almost doubled from its debut on June 30 as investors expect the company will benefit from alternative energy demand in the U.S.
SKC also plans to produce materials used in rechargeable batteries next year, CEO Park said, without giving details including capacity.
South Korea plans to invest as much as 15 trillion won in rechargeable battery technology by 2020, the Ministry of Knowledge Economy said on July 11.