In a move to dispose of noncore assets, Kolon Glotech is considering the sale of its synthetic turf business. One option the Korean company is contemplating is a sale to a private equity fund (PEF).

Sources in South Korea claim that Kolon Glotech is in behind-the-scenes talks with potential buyers already. The group appears to have chosen to strategise its focus on strengthening competitiveness in materials and chemicals. This declares the synthetic turf business as a noncore asset. Talks thus far are only to gauge market reaction. A fully-fledged sale process has not yet started.

Kolon Glotech, established in March 1987, is an affiliate of the Kolon Group. The company operates an automotive materials business producing seat covers and airbag fabrics, a synthetic turf manufacturing business, and golf course and hotel/resort operations. Kolon Industries is the largest shareholder, with an 80.69% equity stake.

According to last year’s results, the synthetic turf business boasted about 69.3 billion (EUR 40M) in sales. This accounts for roughly 28% of total revenue. Its market share reached 42%.

However, it recorded an operating loss of about 400 million (EUR 2M) over the same period. This was mainly caused by the 3 December 2024 “martial law” orders from the Korean Public Procurement Service, which delayed public tenders.

The synthetic turf business of Kolon Glotech is recognised for its strength of securing stable demand based on the public sector, including schools and sports facilities. However, its high dependence on the public market and limited growth potential are cited as factors leading to mixed evaluations among investors.