GS Caltex Localizes Energy Equipment with Partners... Partner Sales Increase by 10.9 Billion KRW

Performance Report on '2021 Productivity Innovation Go Together' with Saenggiwon
This Year, Partner Sales Increased by 10.9 Billion KRW, Cost Savings of 2.4 Billion KRW Achieved

[Asia Economy Reporter Hwang Yoon-joo] GS Caltex has once again embarked on technology development for the localization of energy facilities this year in collaboration with its partner companies. Thanks to GS Caltex, the partner companies recorded a total sales increase exceeding 10 billion KRW.

On the 7th, GS Caltex held the '2021 Productivity Innovation Go Together Support Project' performance report meeting at L Tower in Seocho-gu, Seoul, attended by about 30 people including partner company representatives, project-specific technical mentors, Korea Institute of Industrial Technology, and GS Caltex officials.

The Productivity Innovation Go Together Support Project is a program led by the Korea Institute of Industrial Technology that supports the enhancement of R&D capabilities of small and medium enterprises by leveraging manufacturing technology accumulated by large corporations, providing R&D support and covering necessary costs for partner companies.

At the performance report meeting, the progress of a total of nine projects was reviewed, including four development procurement projects, four R&D projects, and one consulting project from eight partner companies supported by GS Caltex this year, and the results of innovation activities were shared.

Through this project, Dongyang Chemical Machinery successfully produced a prototype of a high-pressure multistage pump for plants, which had a high dependence on overseas suppliers, and after reliability verification, succeeded in promoting localization of the product. As a result, they secured intellectual property rights through patent applications and achieved sales growth of 8 billion KRW and cost savings of 500 million KRW. Additionally, in the R&D project, Coins, a specialized piping inspection company, developed low-pressure piping shut-off technology and equipment that previously relied on overseas products.

GS Caltex, together with the Korea Institute of Industrial Technology, achieved visible results this year through support for nine projects from eight companies, including a sales increase of 10.9 billion KRW and cost savings of 2.4 billion KRW for partner companies. Over the past six years, they have supported 59 projects for 36 companies, resulting in sales growth of 60 billion KRW and cost savings of 12.4 billion KRW for partner companies.

Since participating in the support project in 2016, GS Caltex has strengthened partner companies' R&D capabilities beyond simply covering costs by providing support such as testing and technical data. In particular, they have made efforts to provide practical support to enhance partner companies' competitiveness by supporting the development of technologies, products, and services planned for purchase by GS Caltex.

Jung Yong-han, Head of GS Caltex Strategic Purchasing Division, stated, "With carbon neutrality bringing changes to the industrial base, improving the competitiveness of the supply chain has become an even more urgent task." He added, "To strengthen overall ESG (environment, social, governance) competitiveness, we will continue to pursue joint efforts with our partner companies."