Microtech Establishes Nanomask Production Facility with Monthly Capacity of 100 Million Units... "Global Expansion"

[Asia Economy Reporter Jang Hyowon] Microtech is establishing a nano mask production facility with a monthly capacity of up to 100 million units.

Microtech announced on the 30th of last month that it will invest 5.25 billion KRW in mask manufacturing facilities. This amount represents 11.63% of its equity capital.

Microtech plans to install a total of 40 production facilities at its first mask factory in Paju, Gyeonggi Province. Once the expansion of these 40 units is completed, it will be possible to produce up to 4 million nano masks per day and up to 100 million per month.

A company official stated, "We are preparing to establish a second factory to respond to the rapidly increasing global demand for nano masks," adding, "We will quickly stabilize the mask business in cooperation with our affiliate, N2Cell."

Microtech has signed an OEM (Original Equipment Manufacturer) contract worth a total of 152 billion KRW with N2Cell for mask production. The contracts were made for 38 billion KRW in May and 114 billion KRW in June. The supply quantity is close to 200 million units.

The official explained, "The contract signed with N2Cell is expected to generate sales profits exceeding 80 billion KRW for the company," and added, "As the global supply of nano masks accelerates, the current production capacity (CAPA) of 100 million units per month is expected to be insufficient."

Microtech recently stated that with the increasing possibility of a second pandemic wave of the novel coronavirus (COVID-19) and rising temperatures, demand for nano masks is increasing instead of the existing melt-blown (MB) material masks. The company also mentioned that as N2Cell's order amounts increase, additional supply contracts for Microtech are anticipated.

The official added, "By supplying nano masks worldwide that allow free breathing as if not wearing a mask and have much better anti-virus effects, we aim to contribute to global quarantine efforts and establish ourselves as a leader in K-quarantine."

Meanwhile, on April 28, Microtech acquired shares in N2Cell, a nanotechnology specialist company, and announced its entry into the nano business utilizing nanofiber technology. Additionally, at the extraordinary general meeting of shareholders held on the 15th of last month, mask manufacturing, development, and sales were added to the company's business objectives.