[Special Stock] SJM, Electric Vehicle Game Changer? Innovative Parts Admired by Global Automakers

[Asia Economy Reporter Hyungsoo Park] The mid-sized auto parts company SJM is showing strong performance. The news that it is supplying the high-heat dissipation cooling channel "ZLeak Tube," developed in-house in collaboration with MH Technology Development, to domestic and international automakers appears to have influenced its stock price. MH strategically collaborates with the mid-sized company SJM in sales and production. Earlier, SJM, which specializes in manufacturing Velos, a component for internal combustion engine vehicles, strategically invested in MH to secure a 10% stake in response to the electric vehicle market and announced that it is considering acquiring management rights.

As of 10:35 a.m. on the 3rd, SJM is trading at 4,880 KRW, up 14.55% from the previous trading day. SJM Holdings is also showing a strong rise.

MH and SJM have also launched the joint venture SJMH EV, which will utilize SJM’s infrastructure to conduct sales targeting customers in Europe, Japan, and North America. Production facilities will also be established.

The ZLeak Tube is created by installing an aluminum tube and special filler material in a spring shape inside a cooling housing mold, then casting it to form a channel through which coolant flows. MH developed a filler material that can withstand pressures of 800 to 1,200 bar and secured technology to cleanly remove the filler material after casting.

IT specialized media reported that MH is conducting final technical verification for mass production of the ZLeak Tube. Domestic automakers are also considering applying the ZLeak Tube for the first time in the motor cooling housing of hybrid vehicles to be mass-produced next year. It is known that there are plans to expand this to other hybrid vehicles as well. Global automakers will apply the ZLeak Tube technology to electric vehicles mass-produced in 2024. To this end, MH is in discussions with Nemac, the world’s number one automotive parts die-casting company.

MH plans to start mass production of the ZLeak Tube by the end of this year and supply it to automaker vendors, who will manufacture motor cooling housings and deliver them to automakers through large corporate affiliates. In the global market, MH will cooperate with Nemac.

The ZLeak Tube technology process is simplified into ▲ high-pressure casting process (single casting) ▲ assembly process (filler material extraction) ▲ inspection process (water tightness test), achieving cost competitiveness. It is expected to reduce manufacturing costs by 30%, manufacturing time by 70%, and improve cooling performance by 5%.

Last year, MH was recognized for the innovation of the ZLeak Tube, which achieves three goals in the expanding electric vehicle market: quality safety, improved cooling performance, and cost reduction. MH received an award at the 2nd Open Innovation Challenge hosted by Kyungdong Invest and co-organized by Korea Economic TV and Zeta Plan Invest.

Yujinho, CEO of MH, said, "We believe that the ZLeak Tube technology will resolve issues such as explosions and fires that have been continuously occurring due to instability in cooling systems in the early electric vehicle market. It is a technology that produces a safe water-cooled housing without coolant leakage and is recognized as a leading technology in the rapidly growing electric vehicle market."