DaeYang Metal, New Equipment Investment Effects to Fully Begin in Second Half... "Continued Sales Growth"

[Asia Economy Reporter Jang Hyowon] Daeyang Metal announced on the 15th that it continues to maintain sales growth in September due to the effects of facility investments. This figure is close to the record-high monthly sales achieved in July and August.

Recently, Daeyang Metal has been investing in facilities to improve productivity and produce products with higher profitability than existing low-margin products. In the first half of the year, they upgraded the rolling slitter (HR SLITTER), increasing the material unit weight from 19 tons to 25 tons, thereby enhancing purchasing competitiveness.

The significant sales growth of Daeyang Metal is attributed to the demand for supplying high-quality stainless steel products through entry into the premium home appliance market. They improved quality by using domestically produced high-quality steel materials and were recognized for their long-standing processing capabilities in manufacturing stainless steel products. Entering the premium home appliance market with Chinese steel is difficult due to the potential quality degradation.

Additionally, the introduction of the 1600 slitter equipment also contributed to sales growth. Since the first half of this year, preparations were made to introduce a wide slitter, which began full operation from the third quarter. This expanded product design capabilities, leading to continuous new orders for home appliances from large corporations.

A Daeyang Metal official stated, "Although additional new product orders are coming in, the current factory is operating at full capacity, so these can only be handled after the construction of a new factory," adding, "We have invested 3 billion KRW in facilities this year alone and are preparing an 8 billion KRW investment for further expansion."

He continued, "With the completion of the southern business office expansion this year and preparations to start operations from the first quarter of next year, we expect performance growth not only this year but also next year."