SY, Up to 40 Years Quality Warranty on Color Steel Sheets... "10,000 Tons Exported to 10 Countries Including the USA"

[Asia Economy Reporter Yoo Hyun-seok] Comprehensive building materials company ESWY is solidifying its position as a specialized color steel sheet company. It is expanding external sales by launching color steel sheets with quality guarantees of up to 40 years and exporting them to the U.S. market.

On the 9th, ESWY announced that it launched the ultra-weather-resistant premium color steel sheet 'Hypervil40' and exported trial production units to Kingspan's U.S. subsidiary. 'Hypervil40' guarantees product defects such as surface discoloration and cracking for up to 40 years in collaboration with the global paint company VALSPA. The warranty period is the highest level in the industry worldwide.

Color steel sheets are products that apply colors and patterns to cold-rolled steel sheets, galvanized steel sheets, and aluminum steel sheets. They are used on the surfaces of high-end home appliances such as TVs and refrigerators, as well as interior and exterior building materials. Since they are responsible for the product's appearance, surface peeling or discoloration directly affects quality.

In addition to the 40-year warranty product, ESWY is also producing 'Ceramic Hypervil,' a color steel sheet with self-cleaning power using ceramic paint. Rather than competing with major color steel sheet companies such as Dongkuk Steel, KG Dongbu Steel, and POSCO Steel Sheet, the company plans to establish its position with differentiated products.

Recently, the color steel sheet market has been booming. According to the company, as the front-end demand industries such as home appliances and construction recover from the coronavirus crisis, and raw material prices rise, product prices continue to increase. Prices have risen by about 50% this year alone, approaching 1.5 million KRW per ton. Due to raw material supply difficulties caused by the COVID-19 situation in India, a major steel supplier, and the recent abolition of steel export tariff rebates by the Chinese government, imports from China are expected to decrease, leading to continued price increases for some time.

ESWY evaluates that its investment in expanding color steel sheet production facilities (CCL) to increase external sales beyond in-house production for raw material supply for its main product, sandwich panels, is bearing fruit. The company has secured a total of five production lines: two domestic lines, two in Vietnam, and one in Cambodia.

It has also achieved export results of 10,000 tons of color steel sheets through domestic and overseas subsidiaries. It exported 6,000 tons to Europe including Poland and Ukraine, as well as Japan, Australia, Egypt, Colombia, and Pakistan, and exported 4,000 tons to the U.S. and Canada through its Vietnam subsidiary. The Vietnam subsidiary can export to the Americas by avoiding Korea's steel export quota. The company plans to use the Vietnam site not only to supply home appliances to global appliance companies but also as an export base to developed countries.

A company official said, "Currently, the color steel sheet market is experiencing a surge in demand due to the recovery of front-end industries such as building materials, automobiles, ships, and construction, causing product shortages. Producing color steel sheets in-house not only contributes to improving the profitability of our main product, sandwich panels, but even conservatively estimating, color steel sheet exports this year will exceed 20,000 tons, becoming a cash cow for the company."