"Intensive Emission Crackdown"... Expected Benefits for E&Di Environmental Improvement Catalyst

[Asia Economy Reporter Hyunseok Yoo] E&DD, a company specializing in the development and manufacturing of environmental improvement catalysts and secondary battery materials, announced on the 30th that it is expected to directly benefit from the government's intensive crackdown policy on vehicle emissions.

The Ministry of Environment announced that, to reduce fine dust emissions during winter, 17 cities and provinces nationwide and the Korea Environment Corporation will jointly conduct intensive inspections of vehicle emissions from trucks, buses, and academy vehicles at more than 560 locations nationwide from today until the 24th of next month. Vehicles exceeding the Ministry of Environment's emission standards during this inspection will receive an improvement order within 15 days, and failure to comply with vehicle maintenance and inspection may result in a fine of up to 3 million KRW.

Following the Ministry of Environment's inspection policy, E&DD's core businesses, catalyst systems and catalysts, are expected to benefit significantly.

E&DD is the only domestic company to have obtained all the Ministry of Environment-required certifications applicable to various vehicles based on its proprietary catalyst technology, including soot reduction (composite, regeneration), simultaneous reduction of PM (Particulate Matter) and NOx, and three-way catalysts. The company supplies these to various industrial sectors such as automobiles and agricultural machinery.

An E&DD official stated, "Following the announcement of the 'Eco-friendly Future Mobility Distribution Plan' project last July and the announcement of the nationwide intensive crackdown on vehicle emissions, government regulations and support for 5th-grade emission vehicles continue," adding, "The growth trend in sales of E&DD's catalyst systems and catalysts is expected to strengthen."

As of the third quarter on a consolidated basis, E&DD recorded cumulative sales of 68.7 billion KRW, operating profit of 14.4 billion KRW, and net profit of 10.1 billion KRW, with a cumulative operating profit margin of 21%.