[Power of Small and Strong Enterprises in Industrial Complexes] (Part 1) Opening Export Path to Germany with Valve Actuator Patent Technology

Kosa Plus
Exports to Over 10 Countries Including the US
Achieved 11.2 Billion Won in Sales Last Year
Competitive Despite COVID-19 Recession

[Asia Economy Reporter Kim Daeseop] The various innovative efforts of small and medium-sized enterprises (SMEs) located in national industrial complexes managed by the Korea Industrial Complex Corporation are proving effective despite the economic downturn caused by the novel coronavirus infection (COVID-19). This article introduces their continued competitiveness and growth momentum through market expansion for new market development, new product research and development, and process improvement, divided into two parts.

No Chang-hwan, CEO of Kosa Plus, is smiling brightly at the valve actuator production line at the headquarters located in Siheung, Gyeonggi.

Kosaplus, a valve actuator manufacturer in the Gyeonggi Banwol-Sihwa National Industrial Complex. When a German buyer who planned to visit the company could not enter the country due to COVID-19, a video conference was held this month. The meeting evaluated the price and quality satisfaction of products exported locally on a trial basis last year (about 100 million KRW).

The German buyer requested exclusive supply from Kosaplus, and the two companies are reviewing the draft contract. Full-scale exports to Germany may be possible as early as the second half of this year.

The valve actuators produced by Kosaplus are industrial machines that automatically open and close valves using media such as pneumatic pressure, motors, or hydraulics.

The company develops and mass-produces pneumatic valve actuators and electric valve actuators. The pneumatic type opens and closes valves by injecting air into a cylinder and using the piston force. The electric type uses a motor and a reducer to operate the valve.

CEO No Chang-hwan of Kosaplus said, "Valve actuators are necessary for facilities with processes that require fluid control," adding, "Valve actuators are used in various places, including semiconductor and automobile factories, power plants, and milk factories."

Kosaplus was established in 1991 under the name Samil Engineering and succeeded in developing pneumatic valve actuators in 1997. After establishing the corporation Samil Auto in 2004, it launched the specialized valve actuator brand 'KOSAPLUS' in 2008. The company developed electric valve actuators in 2012 and has steadily grown since changing its corporate name to Kosaplus.

Kosa Plus Headquarters and Factory Exterior View

Currently, the headquarters factory, with a site area of 3,387㎡ and manufacturing facilities of 2,264㎡, produces valve actuators applying patented technology. The company exports to more than 10 countries overseas, including Vietnam, Malaysia, and the United States.

CEO No said, "Our products have good cost-effectiveness (performance relative to price), giving us price competitiveness," adding, "We always strive to improve quality and processes and respond quickly to customer demands, maintaining an advantage in market competition."

Kosaplus is a small and medium-sized enterprise with fewer than 30 employees but recorded sales of 9.9 billion KRW in 2017, 10.6 billion KRW in 2018, and 11.2 billion KRW last year.

Despite the impact of COVID-19, the annual target for this year has been raised to 8% growth. The company also plans to expand investment in the development of new electric valve actuator products. It is focusing on developing large electric valve actuators used in plants and water treatment facilities, aiming for release in the first half of next year.

CEO No said, "Although the export market is concerning due to COVID-19, we plan to continue growth through discovering new markets, expanding sales channels, new product R&D, and process improvements to reduce costs."