Kyungdong Navien's Q3 Cumulative Sales Increase 32.1% YoY to 740 Billion KRW
Boilers and Heating Mats Lead, Account for 88% of Domestic Boiler Exports
Gidulami Holdings' Last Year's Sales 935.2 Billion KRW, This Year's Sales Confirmed to Surpass 1 Trillion KRW
3rd Generation Carbon Mats Popular, Expanding into Air Purification and Air Conditioning Businesses, Transforming into a Comprehensive Energy Company
[Asia Economy Reporter Kim Jong-hwa] The domestic boiler industry rivals, Kyungdong Navien and Guiturami, are engaged in a heated competition to warm up the cold. Especially this year, both companies are expected to surpass 1 trillion won in sales, ushering in a new heyday.
According to the industry on the 30th, Kyungdong Navien and Guiturami have recently been fiercely competing in the eco-friendly boiler and heating mat markets to the point where it is difficult to determine superiority. In the eco-friendly boiler market, the two companies hold over 70% market share, and in the heating mat market, which has grown from 50 billion won in 2015 to 300 billion won last year, they are leading technological competition to dominate the market and drive its growth.
Kyungdong Navien launched Asia’s first condensing gas boiler in 1988 and has been exporting eco-friendly boilers to 30 countries worldwide since entering the Chinese market in 1992. Sixty percent of the boilers produced are exported overseas, with Kyungdong Navien accounting for 88% of Korea’s boiler exports. Kyungdong Navien also pioneered the era of water-heated mats, the second generation of heating mats.
As export scale increased, the company recorded consolidated sales of 873.4 billion won last year, and this year, cumulative sales for the first three quarters reached 740 billion won, a 32.1% surge compared to 560 billion won in the same period last year. Consolidated sales are expected to exceed 1 trillion won for the first time by the end of the year.
Kyungdong Navien consists of eight subsidiaries, including Kyungdong Everrun Co., Ltd., which develops and manufactures heat exchangers and burners; production and sales corporations in North America, China, the UK, Russia, and Mexico; and Kyungdong TS Co., Ltd., which handles services. Boilers and heating mats are effectively the main products. Recently, the company has expanded its business scope with the ‘Navien Clean Ventilation System,’ which simultaneously solves ventilation and air purification in a single product.
Guiturami has shed its image as a boiler company and boldly entered the air purification system, cooling, and air conditioning business, transforming into a comprehensive energy company. In November 2019, it transitioned to a holding company system by establishing Guiturami Holdings, enhancing management transparency and efficiency.
Guiturami Holdings recorded sales of 935.2 billion won last year. This is the consolidated sales of five main subsidiaries in the heating, cooling, and air conditioning energy sector of the Guiturami Group: Guiturami, Guiturami Beomyang Cooling, Shinseong Engineering, Century, and Guiturami Energy. This year, these five companies are expected to surpass 1 trillion won in consolidated sales. Including 11 subsidiaries such as Daegu Broadcasting, Guiturami Land (golf course, hotel), and Dr. Robin dining, the total sales of the Guiturami Group exceeded 1.3 trillion won last year, but this includes non-energy sectors.
In October, Guiturami opened the era of the third-generation carbon mat, breaking Kyungdong Navien’s momentum in the heating mat market. The carbon mat accounts for 30% of Guiturami’s October sales, showing its popularity.
An industry insider said, "The breakthrough of 1 trillion won in sales by the two companies, which revived the stagnant domestic boiler and heating mat market, has symbolic significance," adding, "The fierce technological and marketing competition between the two companies positively influences technology development and market expansion."
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