Large-scale Investment Attraction and New Factory Completion
Support from Jungjin Gong Policy Funds... Advancement of Hydrogen Fuel Cell Technology
The construction site of the new Elf System factory located in Sangbok Industrial Complex, Changwon-si, Gyeongsangnam-do. With a factory site area of 8,500㎡, finishing work is in full swing aiming for completion this October. Once this factory is completed, Elf System's dream of becoming a strong small and medium-sized enterprise in this field by integrating 20 years of accumulated know-how and technology related to hydrogen fuel cell stacks (electricity generating devices) will come one step closer to reality.
Jung Byung-su, CEO of Elf System, said, "Through participation in the Gyeongnam Future Mobility Innovation Company Technology and Financial Support Platform, we were able to establish a mid- to long-term growth foundation such as attracting large-scale investments and promoting the new factory." Elf System's technology in the hydrogen fuel cell field dates back to 1998. That year, AutoN was founded, starting with the steel automation business, continuously researching and developing hydrogen fuel cells, and in 2016, Elf System was established by separately spinning off the technology research institute division.
Since its founding, Elf System has solidified its position as a specialized manufacturer of laser welding automation equipment and servo presses, which are automatic control devices, and has grown into a small and medium venture company producing manufacturing equipment for hydrogen fuel cell components based on its experience in manufacturing automation equipment. This business model reflects CEO Jung's experience and expertise. He is an expert with 28 years of experience in the mechanical field, having graduated from Hanyang University with a degree in mechanical engineering and worked at Samsung Heavy Industries followed by AutoN.
The opportunity for a leap came as demands for a low-carbon and eco-friendly economy increased. According to the government's recently promoted Green New Deal policy, the demand for hydrogen fuel cells is expected to continuously expand. Hydrogen fuel cells are technologies applicable in various fields such as buildings, transportation, and power generation, and Elf System's stack separator manufacturing equipment is expected to expand the market with its unique technology. An Elf System official explained, "We have extensive experience and achievements in the development and production of stack structures, separators, and components, which are core technologies of hydrogen fuel cells that will be future growth engines," adding, "We are currently conducting numerous development projects with leading institutions."
Based on this, Elf System expects sales of 12.8 billion KRW this year, a 47% increase compared to last year's sales. Exports are also expected to nearly double from the previous year, reaching 4.59 million USD. The number of employees increased from 28 last year to 34 this year.
Elf System's ability to make a 'quantum jump' was aided by policy funds from the Small and Medium Business Corporation (SBC). This year, during Elf System's leap phase, SBC provided 500 million KRW in startup foundation support funds. By supporting operating funds due to increased sales and order volumes, growth was driven. CEO Jung said, "Thanks to SBC's financial support in May this year, we were able to achieve the advancement of hydrogen fuel cell development technology."
In addition to financial support, Elf System was selected as an excellent company by participating in the Gyeongnam Future Mobility Innovation Company Technology and Financial Support Platform, which is a collaboration of 12 organizations including SBC, and is expected to lead the activation of the hydrogen economy and job creation in the region in the mid to long term. Kim Hak-do, Chairman of SBC, stated, "In line with the government's Korean New Deal sector development, we will actively support small and medium venture companies with technology and business feasibility to pioneer new industries such as green energy."
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