Local media “hits like employment and free land in Georgia”
Georgia and Tennessee lawmakers letter calling for agreement with both companies
“SK recovers financial incentives if job creation fails”
On the 10th (local time), the Atlanta Journal Constitution (AJC), a local journalist in Georgia, dealt with the news that SK Innovation lost its battery lawsuit as a major issue. Photo = AJC website capture
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As SK Innovation completely lost its’battery lawsuit’ with LG Energy Solutions, the SK Innovation plant in Georgia, USA, turned over. This is because the US International Trade Commission (ITC) issued an order to ban the production, import and sale of SK batteries for 10 years. Throughout the course of this litigation, SK has consistently appealed to the content that “if SK loses, it could have a negative impact on US profits.”
On the 10th (local time), the Atlanta Journal Constitution, a local media in Georgia, said, “SK must stop producing batteries at its Georgia plant (according to the ITC order).” And Ford will have to find another supplier.”
SK Innovation is regarded as a key company supporting the local economy in Georgia. SK is building a battery factory with an investment of 2.6 billion dollars (about 3 trillion won) in Jackson County, Georgia. When the plant was completed, it was expected to employ about 3,000 people. The state of Georgia provided SK with incentives such as about $300 million in subsidies and free land to attract the plant.
In December of last year, some lawmakers in Georgia and nearby Tennessee sent letters to SK and LG calling for an agreement. This is due to concerns that if SK loses the company and is subject to business sanctions, it could adversely affect the local economy. In Tennessee, near Georgia, there is a Volkswagen electric vehicle plant that has decided to supply batteries from SK Innovation.
Georgia Secretary of Economic Development Pat Wilson told the Atlanta Journal Constitution that “if SK fails to create a certain level of jobs (with this loss), it could recover financial incentives.”
What remains is the amount of damages that SK Innovation will pay to LG Energy Solutions. It is known that LG Energy Solutions has so far requested compensation of over 2 trillion won, including actual damages, punitive compensation, and attorney fees, from SK Innovation. In particular, it is reported that the battery supply contract, such as Volkswagen, which SK has won, also requested compensation for this part, saying that it utilized LG’s cost information.
In a conference call (telephone conference) immediately after the ruling, LG Energy Solutions said, “We have negotiated compensation for compensation with SK Innovation several times, and I think that negotiations will begin again soon after today’s ruling. It is difficult to give an answer right now, and if SK presents a proposal with a sincere attitude, it is ready to be reviewed.”
He added, “It is difficult to say that the damage caused by SK Innovation’s hijacking or use of technology is limited to the US,” he added.
Reporter No Jeong-dong Hankyung.com [email protected]
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