[Featured Stock] SPG's Core Robot Reducer Operating Rate at 100%... Samsung, LG, Hyundai Motor, GE 'Kkanbu'

[Asia Economy Reporter Hyungsoo Park] SPG is showing strong performance. As robot-related stocks gain attention in the domestic stock market, SPG, which succeeded in domestic production of robot reducers previously monopolized by a Japanese reducer company, also seems to be affected. The price proportion of reducers accounts for 20-30% of the total robot price, making it one of the essential components.

At 10:26 AM on the 4th, SPG is trading at 13,250 KRW, up 2.72% from the previous day.

Last year, SPG passed the final test of the SR reducer to be applied to CNC machine tools produced by Company A, the largest machine tool company in the United States. SPG received about three years of testing from mid-2018 to gain approval for supply and was recognized for its technological capabilities. The reducer used in CNC by Company A, the largest machine tool manufacturer in the U.S. market, has so far been exclusively supplied by a reducer produced by Japanese Company B.

Reducers are key components that act as joints for industrial robots. It is expected to benefit as one of the parts following Samsung Electronics' plan to establish a second foundry (semiconductor contract manufacturing) plant worth 20 trillion KRW in Taylor, Texas, USA. SPG is one of the world's top 10 reducer companies exporting to 25 countries worldwide. Established in 1991, SPG's sales have increased 200 times over 30 years, from around 2 billion KRW to the current 400 billion KRW range. Its domestic market share also reaches 70%. It supplies Samsung Electronics, LG Electronics, General Electric (GE), Electrolux, Bosch, and others. SPG motors are used in McDonald's beverage vending machines, Coca-Cola smart vending machines, Germany's high-speed train ICE, and premium medical beds at Samsung, Asan, and Seongmo Hospitals in Korea. It also supplied cycloidal reducers for Hyundai Motor's painting lines. The global reducer market size reaches approximately 20 trillion KRW.

SPG is leading localization in the precision reducer market used in semiconductor inspection equipment, machine tools, and industrial robots. It succeeded in commercializing the SR reducer, a medium-to-large precision reducer, in 2018, and last month, it also commercialized the SH reducer, an ultra-small precision reducer.

Yeoyounggil, CEO of SPG, said in an interview with an economic magazine last month, "The current operating rate of the high-precision reducer production plant is 100%, and orders are so backed up that even if we receive orders now, delivery is possible only after 4 to 5 months," adding that export volume this year is expected to exceed twice that of last year.