South Korean materials technology company S&K Polytech has decided to merge with Sunjin Engineering, a specialist in electric vehicle electrical components, according to The Asia Business Daily, following the completion of its acquisition of Sunjin Engineering on 1 July.

The merger, announced on 14 July, is designed to enhance management efficiency and strengthen business synergy by integrating the organisations and resources of both companies. S&K Polytech said the move will enable prompt decision-making and create business synergies as it positions the electrical components segment as a core growth engine.

Sunjin Engineering primarily manufactures busbars and terminals for electric vehicles, leveraging precision press processing technology and quality management capabilities to serve a stable customer base. The company recorded sales of 22.5 billion won (approximately €14.8 million) last year, representing a 35.9% increase on the prior year.

S&K Polytech brings more than 20 years of material technology and research and development capability to the combined entity, having been the first company in South Korea to develop high-density polyurethane foam. The merger extends the company's operations into the fast-growing EV electrical components segment.

The company plans to fund continued investment in growth businesses using financial resources secured through the recent sale of an idle factory valued at 48 billion won (approximately €31.5 million), with the proceeds earmarked to enhance business competitiveness and improve both profitability and growth potential.

A representative from S&K Polytech said: "We decided on the merger to enable prompt decision-making, improve management efficiency, and create business synergies. By entering the electrical components business, we will strengthen our growth prospects and improve our performance."

The merger reflects the increasing strategic importance of EV electrical component manufacturing as automotive electrification accelerates across global markets, with demand for specialist busbars, terminals and related components growing in line with rising EV production volumes among South Korea's automotive supply chain and its international customers.

The combined business positions S&K Polytech to compete across both advanced materials and EV electrical components, diversifying its revenue base and reducing dependence on any single product category as the company pursues improved corporate value.