[Featured Stock] Solueta Strengthens Filter Business with Self-Developed Material That Eliminates 99% of COVID-19

[Asia Economy Reporter Hyungsoo Park] Solueta is showing strong performance following news that it will strengthen its materials business by absorbing its MB filter subsidiary, Filter Science.

At 9:36 a.m. on the 20th, Solueta was trading at 3,725 KRW, up 15.68% from the previous day.

Solueta announced that it will absorb Filter Science, in which it holds 100% equity. The merger will be conducted as a small-scale merger, with the merger contract date on the 19th and the merger effective date set for October 25.

A company official explained, "After the merger, Filter Science will be able to engage in more active sales activities and vigorous research and development," adding, "We will actively respond to the rapidly growing antiviral market due to COVID-19." He further stated, "We will create synergy effects with Solueta’s materials and components business to enhance corporate value."

Filter Science primarily produces water-cooled MB (Melt Blown) filters. MB filters are nonwoven filters made by melting thermoplastic polymers and extruding them through nozzles. They are used in masks, automotive and home air purifiers, air conditioner filters, and more. The company supplies MB filters to customers with quality competitiveness through domestic production and cost competitiveness via a fully automated production system. In particular, it is strengthening new material areas such as automotive cabin filters with a large market size, high-quality antiviral filters for home appliances, and medical fabrics.

Since February, Solueta has also been researching ways to combine antiviral materials developed using nanopowders. Solueta received test reports from Nelson Labs, a U.S.-based antiviral performance evaluation institution, confirming the effectiveness of its new materials against Human Corona Virus 229E. According to market research firm MarketsandMarkets, the global antiviral materials market, which is rapidly growing, is expected to reach at least $43.1 billion (approximately 50 trillion KRW) by 2023.

Previously, Solueta sought new business directions to combat the COVID-19 virus and began research and development, successfully developing materials with antiviral performance against COVID-19 in February. Nelson Labs test results confirmed a 93% virus elimination effect for antiviral films and 99.93% for antiviral nonwoven fabrics. Based on the developed products, the company is pursuing expansion into antiviral nonwoven fabrics, antiviral films and sheets, and antiviral coating solutions.

Additionally, with the advent of the electric vehicle era, Solueta is strengthening new growth engines by actively promoting technology development related to vehicle electronics, such as Ethernet switches and camera systems, in collaboration with its affiliates.

A Solueta official emphasized, "We will strengthen the competitiveness of our materials business through the absorption merger of a promising specialized antiviral materials company," and added, "By leveraging the technological capabilities of both companies, we will gain an advantage in the rapidly growing market and apply our technologies across various fields."

Solueta is a developer of electromagnetic wave shielding materials. Amid the advancement of IT technology and the popularization and acceleration of wireless data communication, it has established itself as a leading company in the electromagnetic wave shielding field. It developed GCL (Graphitic Carbon Layer), a large-area thermal conductor technology. Applying this technology, it launched GLPCB (Graphitic Layer Printed Circuit Board), a material for automotive parts, marking its first entry into the automotive headlamp market. It has started supplying to North American OEMs and is negotiating additional deliveries.