<10> An Seonghun, CEO of GPS
[Asia Economy Reporter Kim Jonghwa] "All plastic containers without liquids will be replaced by eco-friendly containers."
An Seonghun, CEO of Green Package Solution (GPS), which produces the eco-friendly packaging material '6out (Sixout, fiber mold packaging)' that completely decomposes in nature within six months, confidently stated that within the next 3 to 4 years, most plastic containers except for a very small number of special liquid containers will be replaced by 6out.
The only domestic in-box tray manufacturer producing with 6out raw material
GPS currently outsources the production of 'in-box trays' made from 6out raw materials at overseas factories and supplies them to major domestic companies such as S, A, K, and C. In-box trays are mold packaging materials that fix containers or components inside cosmetic or smartphone outer boxes to prevent movement. 6out, made by mixing a very small amount of additives with bamboo and sugarcane, completely biodegrades within six months.
CEO An discovered the potential of eco-friendly packaging materials while overseeing exports and sales of Samsung Electronics mobile phones and PCs in Latin American countries. After a long preparation period, he established GPS in 2018.
Recently, when meeting CEO An at the headquarters in Suwon, Gyeonggi Province, he said, "We tested 6out by burying it in an office flowerpot, and it almost completely decomposed in two months," adding, "Consumers who aim for responsible consumption for the environment and future generations are increasing, and Korean companies are also seeking to improve their corporate image through eco-friendly management in line with this trend, leading to a rise in companies looking for eco-friendly packaging materials."
GPS possesses design and engineering technology for the device (in-box tray) development. Such expertise is rare worldwide because if the intermediate packaging is too tight or too loose, the product will not be fixed or will not come out. Usually, raw material formulation technology is disclosed, but design and engineering technologies related to device development are treated as confidential.
GPS will operate a factory in Gumi, Gyeongbuk Province, in December this year. Following investments from small and medium enterprise support funds, additional large-scale investments are planned for next year. GPS recorded sales of 2 billion KRW last year. Although the target was 7.3 billion KRW this year, it is expected to reach only 5 billion KRW due to the impact of COVID-19.
"If production costs are reduced to 1.5 times, consumers will choose without burden"
CEO An confidently stated, "Sales will increase more than tenfold next year when the factory is fully operational." When asked if the sales target was too ambitious, he explained, "GPS is the only company in Korea producing in-box trays using 6out raw materials, so it is possible." He added, "Only the Gumi factory, scheduled to start operations in December, will supply 5% of the global volume. The market will grow to a scale of 10 trillion KRW within five years, and a market of about 240 billion KRW will be formed next year. GPS will take on more than 80 billion KRW of this."
The problem is the high cost. CEO An said, "Until last year, the production cost of in-box trays exceeded three times that of plastic packaging materials, but now it has been reduced to about twice," adding, "If this cost is lowered to 1.5 times, consumers will choose eco-friendly products without burden." The solution to this problem is mass production.
He said, "If the break-even point is met through mass production, both companies and consumers pursuing value consumption will be satisfied." To this end, GPS is searching for a site for a second factory ten times the size of the Gumi factory. They are planning an investment of about 20 billion KRW aiming for operation as early as 2022. CEO An said, "We have also developed in-box trays for special chemical packaging that maintain a specific temperature for a certain period and are preparing for market launch."
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