Enchem, a leading company in secondary battery electrolytes, announced on the 29th that it has decided to strategically reorganize its stake in Initech , approximately two months after purchasing it.
The company explained this decision, which may seem somewhat unusual, as “a strategic decision to focus all of our capabilities on our core electrolyte business” and “a measure taken as part of reorganizing our global growth strategy.”
Previously, Enchem acquired a strategic stake in Initech, an IT and security solutions subsidiary, in anticipation of synergy, but recently, after much deliberation, it decided to sell its stake in Initech and focus all its capabilities on the electrolyte value chain in line with its strategy of expanding its global value chain and reorganizing its core business.
An Enchem official emphasized, “We wanted to create technical and business contacts, but at this point, we decided that focusing on our core business would be more effective in strengthening our global competitiveness.” He added, “The sale of our Initech stake was not a decision for short-term profits, but a choice to focus on our essence.”
The funds secured through this equity sale will be used for strategic investments and expansion of Enchem's electrolyte and raw materials value chain.
Enchem has recently been accelerating its strategic moves in the Chinese and US markets. In China, it plans to significantly expand its electrolyte supply by hundreds of thousands of tons and secure next-generation material technology by implementing equity investment and acquisition strategies to enter the value chain of top battery companies such as CATL and BYD.
In the United States, the plan is to accelerate investment in major production bases in Georgia, Tennessee, and Indiana through financing. A company official said, “In addition to electrolytes, we will focus on new businesses such as recycled NMP (R-NMP), carbon nanotube (CNT) dispersions, and internalization of lithium salt raw materials, and secure an overwhelming competitive edge in major overseas markets.”
Enchem is pursuing a policy of securing profitability and stability by strengthening its core business and expanding globally, and this decision is noteworthy in that it is a judgment to maximize business efficiency and execution power through selection and concentration.
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