SK Lubricants to focus on achieving a carbon neutral value
SK Lubricants, the lubricants arm of conglomerate SK Group, the third-largest chaebol in South Korea, intends to focus its efforts on two key areas in 2022.
According to SK Lubricants CEO Cha Gyu-tak, these are earning customer recognition for its carbon neutral value and setting the groundwork for future business expansion. He made these comments during an interview with in-house news channel SKinno News which was published on February 22, 2022.
During the interview, Cha also reviewed the accomplishments of the company in 2021. Despite the impacts of the Covid-19 pandemic and an uncertain management environment, SK Lubricants achieved its highest results since the company’s foundation, says Cha. The company’s value was recognised in the financial markets with success in offering its stake, which reflected SK Lubricants’ product power, market-leading business capabilities and future growth potential, he says.
The business must continue to strengthen the competitiveness of its existing businesses, however Cha believes that business model innovation is the most crucial aspect of achieving SK Lubricants’ “financial story”. The company is dedicated to carbon reduction and is working hard to reach carbon net zero through its green transformation, he says.
Achieving a carbon neutral value allows SK Lubricants to provide customers with carbon credits earned through its carbon reduction activities. Cha told SKinno News that the company prides itself on “having the most advanced products in the lubricants industry” and indicated the organisation is preparing to secure an Eco-Friendly Lubricants Value Certificate to be officially recognised for carbon credits relating to carbon dioxide emission reduction and energy efficiency of its lubricant products.
The CEO also offered details on plans to implement the practice of “lubricants upcycling,” which involves reusing discarded lubricants to generate new products. SK Lubricants has started investigating a business model that can create eco-friendly premium base oil by incinerating/treating waste base oil as fuel, to establish an eco-friendly circular ecosystem.
SK Lubricants offers a range of lubricants for electric vehicles. Cha highlighted an intention to broaden its product portfolio (e-fluids) beyond combustion engines in 2022 to “reinforce our sustainability in terms of business model transformation.”
Cha also unveiled plans to enter the thermal management business segment, part of its Business Model Innovation project. The business is investigating a variety of options in this space, including the burgeoning data centre server liquid immersion cooling sector.
Cha expressed confidence in SK Lubricants’ path to realising SK Lubricants’ “financial story.” However, the most crucial factor is “speed,” he adds.