Synopex will merge with cable maker Flontec, the company announced in its filings to financial authorities on Thursday.
Last year in March, Synopex secured the rights over the technology and sales for Flontec’s ePTFE (expanded polytetrafluoroethylene) membrane business and burrowed equipment to operate its own polytetrafluoroethylene (PTFE) business.
PTFE is used to make air filters and is also a core material used in the production of hydrogen fuel cell scaffold.
It is also used to build utra-low particulate air (ULPA) filters, which is a higher grade than high efficiency particulate air (HEPA) filters. The filters are needed for South Korean firms to localize semiconductor chemical processes and hydrogen processes. The filters has been imported so far.
Synopex is in the middle of a three-year national development project to develop fuel cell ionomers and improve catalysts efficiency. The company has competence in various filters and filter membranes for both liquid and gas.
The merger will Flontec will add PTFE to its portfolio. It will likely boost the company’s current HEPA and ULPA filter businesses as well as contribute in localizing the production of high-performance PTFE membrane filters and hydrogen fuel cell scaffolds.
Founded in 2003, Flontec specializes in producing PTFE materials and polyethylene insulated coaxial cable (ECX). The company has various products and technology in special cables made with PTFE used for antennas, semiconductors, displays and medical devices.
A Synopex spokesperson said the merger will provide the company with the opportunity to expand into IT, auto-component, home appliance and medical equipment markets.
The company has been investing equipment to produce HEPA filters based in its technology in melt-blown filter for semiconductor chemical mechanical polishing process.
H13 grade can eliminate 99.97% of particles between 0.1 micrometer to 0.3 micrometer in size. H14 can eliminate 99.99% and H15 99.999%. Grade of up to H14 is considered HEPA. Those that are higher are ULPA.
Synopex’s MB filters are HEPA grade and it uses PTFE to make ULPA grade filters. It is the only company in the world that can use both materials.
The company said it can localize the production of high-performance PTFE filters that were previously imported.
Synopex will sign the merger contract with Flontec on Friday. The merger will wrap up by September 30. On August 11 it will receive creditors’ opinions. Synopex’s share was valued at 2971 won (face value of 500) per share and Flontec’s was valued at 5627 per share (face value of 5000, share issuance of 360,000). The merger ratio will be 1 to 1.8939751. 681,830 new shares will be issued from the merger.
“We will expand in the relevant market and localize production of core materials through the synergy between the two companies,” the Synopex spokesperson said.
