SK Square's logistics subsidiary FSK L&S announced on the 17th that it has secured a contract for the operation of the fulfillment center for the joint venture Blueoval SK (BOSK) between SK On and Ford in the United States.
The contract period is six years from this year until 2030, with the possibility of extension until 2034. During the contract period, new annual revenues in the hundreds of millions of won are expected from BOSK and vendor companies. Along with this, there are plans to significantly grow both sales and operating profit this year by using new projects such as semiconductor NAND logistics services in China and North America as a springboard.
Through this contract, FSK L&S will be responsible for operating the fulfillment center to support the manufacturing of three BOSK battery plants. This means it will oversee the logistics operations before and after the manufacturing process of batteries produced by BOSK. For example, it will store battery raw materials close to the factory, supply the necessary amounts according to production schedules, and manage the storage and inspection of completed batteries. Essentially, it will serve as the 'dedicated manager' of the battery plants. With a dependable manager, the plants can focus solely on production.
This contract is regarded as significant as it marks FSK L&S's first entry into the 'battery belt,' a core hub for electric vehicle battery production in the United States, thus broadening its business scope. The combined annual production capacity of the three plants being built by BOSK in Tennessee (one plant) and Kentucky (two plants) totals 127 GWh, sufficient to produce approximately 1.2 million Ford pickup trucks equipped with 105 kWh batteries. Notably, the site for the Kentucky plants 1 and 2 spans 6.28 million square meters, equivalent to about 880 soccer fields, making it the largest in the United States.
Analysts attribute FSK L&S's success in securing this project over local corporations to the competitiveness of its self-developed digital logistics platform 'KEROL.' By integrating KEROL into the operation of the fulfillment center, FSK L&S can automate and optimize work processes such as real-time inventory monitoring, optimal placement of parts, and determining shipping order, thereby reducing unnecessary inventory and labor costs. It is expected to serve the role of a smart 'AI assistant' for the fulfillment center.
As FSK L&S broadens its scope and strengthens profitability, the portfolio value-up achievements of its parent company SK Square have also become visible. SK Square is actively working on improving portfolio profitability through strategic reviews of its various business portfolios.
The recent business award of FSK L&S is also interpreted as part of SK Square's value-up project. Particularly, with the increasing importance of establishing local production bases due to U.S. tariff policies, the operation of the fulfillment center targeting BOSK, which has local production facilities, is seen as a timely business expansion.
At the end of last year, SK Square conducted a regular personnel reshuffle, appointing Kim Yong-jik, a purchasing and logistics expert from SK On, as the CEO of FSK L&S. Kim is considered a suitable figure to lead FSK L&S to become a 'global logistics corporation.'
Kim Yong-jik, CEO of FSK L&S, noted, 'We will utilize data and IT platforms to integratively manage the entire logistics process in real time, going beyond traditional logistics services,' and stated, 'Based on this, we will actively lead the digitalization of logistics services by optimizing customer-centric supply chain management (SCM) and achieving reductions in logistics expenses.'
Founded in 2016, FSK L&S is engaged in logistics BPO (outsourcing) businesses such as transportation management and warehouse management. It handles various products including semiconductors, precision equipment, and batteries. A distinctive feature is that it has established a system to track and data logistics processes through its integrated logistics platform KEROL, allowing clients to manage conveniently.