[Asia Economy Reporter Jang Hyowon] Kowintech (CEO Jaehwan Lee) announced on the 13th that it has signed a supply contract worth approximately 7 billion KRW with a European secondary battery company. This amount corresponds to 7.85% of last year's sales revenue of 91.1 billion KRW.
Kowintech is a company that supplies automation systems across various industries including secondary batteries, semiconductors & displays, petrochemicals, and ultra-heavy materials (steel, secondary battery materials). This European secondary battery order can be interpreted as a recovery signal for the recently sluggish secondary battery market, and it is even more meaningful as a large-scale secondary battery production capacity (CAPA) expansion centered in Europe is anticipated.
Until the first half of the year, Kowintech faced difficulties in securing orders due to COVID-19, but from the second half, starting with this order, it is expected to continue a more active order flow. Kowintech holds references not only in secondary batteries but also in various industries, so an expansion of orders is expected due to increased investment in smart factory (automation) facilities in the future.
A Kowintech representative explained, "The trend toward unmanned factories due to the COVID-19 situation has expanded the need for automation systems, and through the development of R&D innovative logistics facilities, diversification of overseas customers and orders in semiconductors/displays are expected."
Jongwon Lee, an analyst at Sangsangin Securities, analyzed, "Kowintech is the only automation equipment company capable of building automation equipment lines for the front-end process of secondary batteries, and since secondary battery companies' CAPA expansion plans are expected to continue until 2023, related benefits are anticipated," adding, "Additional external growth targeting overseas companies is expected during the period of increased automation equipment adoption."
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