Seoul: SK Innovation Co., South Korea’s leading oil refiner, announced plans to merge two of its electric vehicle-related affiliates as part of a strategic business reorganization in response to a decline in EV sales. The move is aimed at streamlining operations and enhancing synergies in the electrification sector.

According to Yonhap News Agency, SK On Co., the company’s unit focused on EV battery manufacturing, will absorb SK Enmove Co., which specializes in EV lubricants and thermal management solutions. This consolidation is expected to improve cost efficiency in logistics and strengthen the company’s competitive position in the evolving electric vehicle market.

In addition to the merger, SK Innovation disclosed its intention to issue 18 million common shares at a price of 111,000 won (approximately US$80) each. This initiative is projected to raise 1.99 trillion won, with the funds earmarked for debt repayment. The company aims to fortify its financial structure amid the ongoing challenges in the EV market landscape.