Dae Yang Metal Anticipates Performance Improvement Through Expansion

[Asia Economy Reporter Hyungsoo Park] Daeyang Metal estimated that its sales in the first quarter of this year would reach 41.5 billion KRW, with an operating profit of 1.3 billion KRW. This represents an increase of about 24% compared to the previous quarter and about 9% compared to the same period last year.

Daeyang Metal's major clients are home appliance companies such as LG Electronics and Samsung Electronics. As the domestic premium home appliance market grows, the company has supplemented and expanded its facilities since June last year to effectively respond to the increasing sales volume. With the expansion of production facilities, sales are also on the rise. Facility improvements have led to enhanced quality and production efficiency.

Daeyang Metal has also newly entered the dishwasher process, where sales volume continues to increase, securing additional growth momentum. It is expected that once the new production facilities start operating from the second quarter, production volume will increase by about twice compared to the existing capacity.

Daeyang Metal experienced poor performance last year due to the global recession caused by COVID-19, rapid exchange rate fluctuations, increased repair costs from normalizing facilities neglected during the workout period, raw material price increases, and delayed reflection of product price adjustments. However, by recruiting professional management and thoroughly preparing for sales declines caused by COVID-19, the company achieved operating profit in the black through stable crisis management capabilities.

Since its founding in 1973, Daeyang Metal has been a specialized manufacturer of high-gloss stainless steel cold-rolled sheets, focusing solely on the stainless steel sector. For the past 47 years, it has led the domestic market's top ranks and exports over 100 million USD to 30 countries worldwide.

A Daeyang Metal official stated, "We expect that the sales increase in the first quarter of this year will create a turning point for additional growth," adding, "Daeyang Metal has been diversely reviewing new growth industries related to the environment together with external experts for a long time."

He continued, "Through investment in advanced materials, we plan to secure future-oriented growth technologies and transform into a materials-specialized company to meet shareholders' expectations."