[Click eStock] Ecopro BM, Limited Impact Expected on Ochang Plant Production

[Image source=Yonhap News]

[Asia Economy Reporter Junho Hwang] Kiwoom Securities forecasted on the 24th that the impact on the production line would be limited regarding the fire incident on the 4th to 6th floors of Ecopro BM's Ochang plant that occurred on the afternoon of the 21st.

The exact extent of the damage is under investigation and will be disclosed later. However, financial damage is expected to be limited as insurance coverage amounts to 443.9 billion KRW. It is also anticipated that there will be no disruption in the supply of cathode materials for EVs. Ecopro BM operates two plants in Ochang and Pohang, with all EV cathode material expansions taking place at the Pohang plant.

Researcher Jonghyung Lee of Kiwoom Securities stated, "The Ochang plant mainly produces NCA cathode materials used in small home appliances," adding, "The total capacity of the Ochang plant where the fire occurred is 29,000 tons, of which approximately 17,000 tons are estimated to be from the CAM4/CAM4N lines." He further noted, "Due to the personnel accident, it is expected that some time will be needed before the plant can resume operations."