Ssangyong C&E, H1 Sales Reach 752.8 Billion KRW... "Improved Performance in Environmental Business"

First Half Sales Up 8% Year-on-Year... Operating Profit at 112.1 Billion KRW
Cement Shipments Slightly Increased... Environmental Business Division Sales Also Expanded
Optimistic Outlook for Second Half... Recycling Resource Processing Facility Fully Operational

Exterior view of Ssangyong C&E's Donghae Plant. [Photo by Ssangyong C&E]

[Asia Economy Reporter Junhyung Lee] Ssangyong C&E announced on the 4th that its sales in the first half of this year reached 752.8 billion KRW, an 8% increase compared to the same period last year (699 billion KRW). Operating profit was 112.1 billion KRW, with an operating profit margin of 15%.

The reason Ssangyong C&E was able to achieve such results lies in the slightly increased cement shipment volume. Despite adverse factors such as the spread of COVID-19 in the first half of this year, delays in construction site progress due to shortages of building materials, heat waves, and strikes by ready-mixed concrete transport drivers, the company delivered solid performance.

Expansion of sales in the environmental business division was another factor. Ssangyong C&E stated, "Operating profit slightly decreased compared to the same period last year due to the base effect of carbon emission rights sales profits and the impact of rising bituminous coal prices," adding, "(However) it is analyzed that actual operating profit improved compared to the previous year due to the substantial profit improvement in the environmental business division, such as the increased fuel substitution effect of recycled resources."

Since 2018, Ssangyong C&E has invested more than 100 billion KRW to complete a processing facility that replaces bituminous coal with recycled resources at the end of last year. The company plans to continue increasing the use of recycled resources by making additional facility investments in the future.

The outlook for the second half of this year is also "rosy." This is because cement shipment volume is expected to rise due to the expansion of domestic cement demand, and the environmental business division's profitability is also expected to improve as the recycled resource processing facility begins full-scale operation. Since Ssangyong C&E established Green Eco Solution, a recycled resource intermediate processing company, in the first half of this year and has been pursuing vertical integration for recycled resource procurement, the scope of the environmental business division is also expected to expand.

A Ssangyong C&E official said, "We will strive for profit growth through proactive investment in recycled resource processing facilities and expansion of the environmental business, including entry into recycled resource intermediate processing."