[Asia Economy Reporter Hyungsoo Park] Seamechanics is showing strong performance. The expectation of benefits from Hyundai Motor's large-scale electric vehicle investment appears to be influencing the stock price. LG Energy Solution's plan to expand its battery factory in the United States is also interpreted as having a positive impact.
As of 11:28 AM on the 24th, Seamechanics is trading at 6,570 KRW, up 17.53% from the previous day.
Founded in 1999, Seamechanics is a company that produces automotive and electronic components based on proprietary aluminum die-casting technology. Its main products include ▲secondary battery components ▲electric vehicle and electric two-wheeler components ▲hydrogen vehicle components ▲internal combustion engine components ▲display devices.
Seamechanics is strategically fostering its eco-friendly vehicle parts business while steadily growing its electronic components division. At the time of its initial public offering (IPO), CEO Changhyun Jo of Seamechanics stated, "We are strengthening our technological competitiveness targeting rapidly growing front markets such as electric vehicles, hydrogen vehicles, and displays," adding, "We will expand into overseas markets and leap forward as a company leading the future eco-friendly vehicle market and high-tech electronics market."
The die-casting technology owned by Seamechanics allows production of new products in response to future industrial changes. It supplies 'end plates' that protect batteries from external environments to LG Energy Solution. Having succeeded in securing orders for Ford products at its Poland factory, mass production is expected to begin this year. There are many factors expected to improve performance, including new orders and supplier registration for Hyundai-Kia (Sebang Lithium Battery) and active sales efforts toward SK Innovation. It also produces DC-BOX, a DC current conversion device and electric vehicle component. It is currently supplying to Daimler and is actively pursuing orders from LG Magna’s finished vehicle customers.
Based on increasing demand, Seamechanics is building a new factory by integrating artificial intelligence (AI)-based smart factory technology. The annual production capacity will be established at a scale exceeding 500 billion KRW. Construction will begin in May and is planned to be built in stages until 2025. The company is also promoting the establishment of production subsidiaries in major export countries for overseas expansion. Through advanced research and development, it plans to preoccupy the market with next-generation technology-applied products and expand overseas markets including North America, China, Europe, and Southeast Asia. Targeting the completion of the first factory construction in October this year, it plans to invest approximately 73 billion KRW in facilities by 2025 considering new orders. A land purchase contract was signed in November last year. Part of the public offering funds will be used for land acquisition and new factory construction costs, with additional necessary funds to be raised through cash on hand, policy fund loans, incentives for the 5th industrial complex site (local investment promotion subsidies), and cash flow from operating activities.
The funds raised through the IPO will be invested in ▲new factory construction and advanced facility expansion ▲strengthening eco-friendly vehicle businesses such as electric and hydrogen vehicles ▲technology advancement and new technology development ▲securing new die-casting process technology ▲marketing for overseas market expansion.
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