Optrontek Acquires Industrial Material Company with Annual Sales of 100 Billion Won

[Asia Economy Reporter Hyungsoo Park] Optical component company Optrontec is acquiring an industrial materials company with annual sales of approximately 100 billion KRW. Once incorporated as a subsidiary, Optrontec's consolidated sales are expected to approach 400 billion KRW.

Optrontec announced on the 21st that it will acquire a 32.3% stake in JWorld for 16 billion KRW. Established in 1998, JWorld is a company that produces industrial materials such as high-performance films and tapes used in processes for smartphone cameras and batteries. It supplies products to numerous optical component material companies. Through its production subsidiary in Vietnam, it supplies to overseas markets. The company plans to pursue additional growth by expanding its client base and completing its factory in India.

Despite the COVID-19 pandemic, JWorld achieved sales close to 100 billion KRW. Last year, it recorded consolidated sales of 96 billion KRW and an operating profit of 3.6 billion KRW. In 2019, it achieved sales of 113.9 billion KRW and an operating profit of 7.6 billion KRW.

A company representative explained, "In the first quarter of this year, sales were 34 billion KRW and operating profit was 4 billion KRW."

Optrontec acquired JWorld as part of its business diversification strategy. Together with JWorld, Optrontec plans to expand its business areas into the display market and automotive parts. With JWorld’s strong performance and excellent technology, Optrontec expects to generate investment returns if JWorld pursues an initial public offering (IPO).