SK Chemicals Company, part of South Korea’s energy and petrochemicals conglomerate SK Group, said it had agreed to sell its polyphenylene sulfide (PPS) business to HDC Hyundai Engineering Plastics Company, according to local reports.

The company’s PPS division makes high-performance engineering plastics, used extensively by automotive and electronics sectors, at factories located in Ulsan. These plastics have high thermal and chemical stability and offer a lightweight alternative to metal.

SK Chemicals had agreed to sell the division for KRW38.5bn (US$33m) to focus on higher margin business. It cited lack of potential to improve the division’s profitability and rising financial burden as the main reasons for the sale.

The company entered this business in 2013, but had incurred ongoing losses due to sluggish sales and tough price competition.

The company said it wanted to revamp its product range to focus on more  environment friendly business.

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