[Special Stock] Daechang Solution Rises on Ammonia Subsidiary Distribution Amid Urea Water Shortage

[Asia Economy Reporter Minwoo Lee] Daechang Solution's stock price is on the rise. Recently, amid the shortage of urea solution, news that its subsidiary distributes ammonia, a raw material for urea solution, has been highlighted, leading to its classification as a related stock.

At 10:41 AM on the 5th, Daechang Solution's stock price recorded 590 KRW, up 10.07% compared to the previous day. As a shortage of urea solution, which is essential for diesel engine vehicles such as freight trucks, caused by China, emerged, news that its subsidiary, Cryos, handles related fuel appears to have been emphasized.

Urea solution is a component that converts nitrogen oxides (NOx), carcinogens emitted from diesel vehicles, into water and nitrogen. It is essential in selective catalytic reduction (SCR) devices, which are mandatory for trucks and other vehicles to reduce nitrogen oxides.

The raw material for urea solution, urea, accounts for about two-thirds of domestic imports from China. Recently, China has mandated pre-export inspections on urea, causing supply issues. China has traditionally produced urea by extracting ammonia from coal, but due to conflicts with Australia leading to reduced coal supply, it appears to have taken this measure.

Accordingly, news that Daechang Solution's subsidiary Cryos is engaged in ammonia distribution business seems to have acted as a positive factor. Cryos is known to possess outstanding technology in fields such as hydrogen, liquefied natural gas (LNG), ammonia distribution facilities, large-scale ultra-low temperature liquefied gas facilities, and eco-friendly engine fuel supply devices. It is currently the only Samsung Electronics-approved supplier in the liquefied ammonia transport tank supply sector.