[Featured Stock] Huchems Starts Soaring on Growth Expectations from Expansion...

[Asia Economy Reporter Lee Seon-ae] Huchems is showing a sharp rise on the 12th.

As of 9:22 a.m. on the day, Huchems is recording 23,650 KRW, up 9.49% from the previous day. During the session, it surged to 25,000 KRW. This is interpreted as buying momentum flowing in due to growth expectations.

Huchems is a specialty chemical company producing basic raw materials for polyurethane such as DNT (Dinitrotoluene), MNB (Mononitrobiphenyl), as well as nitric acid and nitroguanidine. Huchems announced that the expansion of the nitric acid plant in the Yeosu Industrial Complex is currently selecting technology-related companies and finalizing the design. In October 2019, Huchems announced the expansion of its sixth nitric acid plant with an investment of 150 billion KRW. The production capacity of the new nitric acid plant will reach about 400,000 tons. Once completed, production capacity will expand to 1.5 million tons starting in 2024. Upon completion of the nitric acid plant expansion, Huchems is expected to become a leading nitric acid producer in the Asian region. Huchems currently accounts for most of the domestic nitric acid production capacity and boasts the largest production scale in Asia.

Huchems currently consumes half of its nitric acid production for producing polyurethane raw materials such as DNT and MNB, as well as nitroguanidine, which is used in semiconductor cleaning and construction explosives. The remaining half is supplied to domestic and overseas markets. As demand for nitric acid increases, performance is also expected to improve significantly. According to the chemical industry, as the industrial recession caused by COVID-19 is easing, demand for nitric acid used in advanced industries such as semiconductors and displays is rapidly increasing.

Huchems is not only expanding production but also advancing eco-friendly processes. Since 2007, Huchems has installed greenhouse gas reduction facilities at its nitric acid plants to reduce greenhouse gases generated during the ammonia-to-nitric acid process. Huchems plans to install greenhouse gas reduction devices in the new nitric acid plant as well, contributing to environmental improvement. Through this, Huchems secures carbon emission rights of up to 1.6 million tons annually, the largest among single domestic companies in the nitric acid sector. Since 2015, these carbon emission rights have been traded in the domestic market, contributing to Huchems' profit growth as a result of proactive environmental investments.

Shin Jin-yong, CEO of Huchems, said, "We will make Environmental, Social, and Governance (ESG) the foundation of our management," adding, "Through the sixth nitric acid plant, Huchems will solidify its leading position in the market and simultaneously contribute to responding to the climate crisis."