[Special Stock] Copra Benefits from Domestic Production of Engineering Plastics, Key to Efficiency in Electric and Hydrogen Vehicles

[Asia Economy Reporter Park Hyungsoo] As automotive parts stocks surge collectively, KOFRA's stock price is also expanding its gains.

At 10:30 AM on the 16th, KOFRA was trading at 4,135 KRW, up 7.96% from the previous day.

KOFRA produces and sells high-performance polymer materials (chips), an advanced materials industry. The high-performance polymer materials (chips) industry, which is KOFRA's main production and sales focus, is closely linked to the development of all industries including automotive, electrical and electronics, and furniture sectors. Since over 80% of its major sales are in the automotive sector, there is a strong correlation with the development of the automotive industry and automotive-related high-performance polymer materials (chips).

KOFRA expects that over time, the proportion of high-performance polymers replacing metals, glass, and general-purpose polymers will gradually increase. The biggest issue in the automotive industry is improving fuel efficiency, and the best way to enhance fuel efficiency is to replace heavy steel and glass with high-performance polymers.

The PA market is dominated by global companies such as BASF and DuPont. Recently, as domestic automakers have localized materials like plastics, KOFRA's market share is expected to gradually rise.

With growing interest in electric vehicles and hydrogen fuel cell vehicles in the finished car industry, securing engineering plastics technology has become urgent. This is because battery capacity must be increased to extend maximum driving range while keeping weight light, and risks such as short circuits, open circuits, and explosion fires caused by external shocks must be minimized.

Attention is focused on engineering plastics that are resistant to heat and pressure. Polyamide (PA), a lightweight automotive material, is lighter than metal while exhibiting high stiffness and heat resistance comparable to metal, and is evaluated to have excellent friction wear resistance, tensile strength, chemical resistance, and flame retardancy.