[Asia Economy Reporter Hyungsoo Park] Kumyang's stock price is on the rise. The forecast that the global hydrogen business investment scale will reach $500 billion (approximately 582 trillion KRW) by 2030 appears to have influenced the stock price. Domestic conglomerates are also joining forces to foster the hydrogen industry.
As of 10:07 AM on the 31st, Kumyang is trading at 5,620 KRW, up 12.96% from the previous day.
According to the industry, the ‘2021 Hydrogen Mobility+ Show’ will be held on the 8th of next month at KINTEX in Goyang-si, Gyeonggi-do, where a hydrogen business council co-chaired by Hyundai Motor Group, SK, and POSCO will officially launch the ‘H2 Business Summit.’
According to the ‘Hydrogen Insight Report’ published earlier this month by the Hydrogen Council, a global hydrogen company council, and McKinsey, the number of large-scale hydrogen-related projects worldwide has reached 359, tripling from 131 in February in just five months. Based on these projects, the Hydrogen Council forecasts that the global hydrogen business investment scale will reach $500 billion by 2030.
The clock for carbon neutrality to respond to climate change is accelerating, and movements to foster eco-friendly industries centered on their own countries are intensifying, fueling efforts to build a hydrogen ecosystem.
Kumyang is a representative local company in Busan, known for domestic production of foaming agents for the first time in Korea and for being the world’s number one company in the foaming agent sector. Last year, it succeeded in developing the world’s first ‘eco-friendly foaming agent’ that contains no harmful substances such as formamide and ammonia.
Kumyang, a precision chemical industry specialist, is pursuing sales diversification through new growth engines such as secondary battery materials and hydrogen fuel cell businesses. In the hydrogen fuel cell field, it is continuously conducting research to become the world’s number one company in metal nanoparticle catalyst applications, including ultra-small nanoparticle manufacturing technology and nano-metal particle support technology.
It received catalyst technology capable of synthesizing ultra-fine nanoparticles from the Korea Institute of Science and Technology (KIST). In February, Kumyang signed a memorandum of understanding (MOU) with KIST for joint research and development cooperation on fuel cell technology and materials. It is actively promoting hydrogen fuel cell development projects, having successfully recruited Jang Seok-young, former 2nd Vice Minister of the Ministry of Science and ICT. The catalyst field, which produces electricity through the electrochemical reaction of hydrogen and oxygen, is the core of fuel cells. Kumyang’s subsidiary, Kumyang Innovation, is focusing on research and development aiming to build membrane electrode assembly lines and stack production, starting with technology transfer and mass production of catalysts. Through R&D, it is expected to reduce the catalyst usage in fuel cell vehicles to below 10g. The entry into the hydrogen economy is expected to accelerate further.
Kumyang is also promoting the construction of the ‘Hydrogen Advanced Industry Center,’ which will serve as a hydrogen fuel cell research and development (R&D) platform, on the site of its headquarters factory in Gamjeon-dong, Busan. The Hydrogen Advanced Industry Center, to be built with a total project cost of 20 billion KRW and consisting of two basement floors and ten above-ground floors, is planned to begin construction within this year and be completed by next year. Kumyang’s strategy is to house about 30 hydrogen-specialized small and medium-sized venture companies and research institutes to maximize R&D synergy effects through joint projects.
Demand for lithium hydroxide for cathode materials is also expected to increase. Lithium hydroxide is a key material that facilitates the synthesis of ‘high-nickel’ cathode materials, the next-generation secondary battery. Based on the technology and know-how accumulated in the foaming agent business, Kumyang has succeeded in establishing lithium hydroxide processing facilities. Additionally, Kumyang is also conducting a cathode material additive business.
A Kumyang official said, “As demand for domestic production and internalization of cathode materials increases, interest in our secondary battery and hydrogen fuel cell businesses will also grow. Along with our main foaming agent business, we will lead long-term performance growth through continuous investment in new businesses.”
In the second quarter of this year, Kumyang recorded an operating profit of 2.5 billion KRW on a consolidated basis, a 154% increase compared to the same period last year. Sales during the same period rose 29% to 51.9 billion KRW. The first half performance also showed good results. Operating profit for the first half was 6.6 billion KRW, up 63% from the same period last year. Sales increased 15% to 102.3 billion KRW, and net profit turned positive at 2.6 billion KRW.
The company attributed the strong performance to increased exports of foaming agents, including ‘OBSH,’ to Europe. OBSH, Kumyang’s flagship product, is an eco-friendly foaming agent used in automotive weatherstrips. With the recent global economic recovery and growth in the electric vehicle market, demand for the company’s products has increased. Furthermore, Kumyang reported that production at its Chinese factory has also increased due to efficiency improvements through production plant relocation.
Kumyang’s eco-friendly foaming agents do not generate harmful substances or odors (such as sulfur compounds and sulfur oxides) during processing, making them applicable to various products such as mats, wallpaper, flooring materials, and shoes. The company is actively targeting related markets by launching new products such as the eco-friendly puzzle mat ‘evaZERO,’ which applies eco-friendly foaming agents.
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