Expecting to Win Australia's Iron Bridge Magnetite Project
Ceramic Beads: Essential Industrial Consumables to Increase Mineral Extraction Rates
Preparing to Enter Electric Vehicle Parts Market Using Ceramic Technology
[Asia Economy Reporter Hyungsoo Park] Senotec's stock price is showing an upward trend. As results emerge from newly pursued business sectors, expectations for improved performance appear to be influencing the stock price.
As of 1:45 PM on the 31st, Senotec is trading at 2,710 KRW, up 13.87% from the previous day.
Senotec is developing ceramic carriers, chemical neutralizing agents, ceramic bearings, and other products to discover new revenue streams. Senotec recently shared updates through a management and technology professional journal produced by the Small and Medium Business Corporation.
Senotec suffered considerable setbacks as major customers such as overseas mines and factories shut down due to the COVID-19 pandemic. The company continuously communicated via email, SNS, and non-face-to-face video meetings to understand customer needs. It is expecting to secure a 10 billion KRW order for the Iron Bridge magnetite project in Australia. It is also reportedly discussing the supply of ceramic beads to graphite and lithium iron phosphate mines, essential materials for secondary batteries. In mining, using high-density, high-strength ceramic beads to crush minerals allows easy separation and increased extraction of very fine particles of gold. These are essential industrial consumables used to increase mineral recovery rates.
Senotec's greatest strength lies in realizing localized service through rapid technical consultations using local distributors and shortening delivery times and responding swiftly to emergencies by operating warehouses. By securing annual exclusive contracts with mines that previously preferred one-time or multiple suppliers for inventory, Senotec has established a stable sales base. The biggest factor affecting sales is the mining volume of non-ferrous minerals such as gold, platinum, silver, and copper. According to quarterly reports, the mill operation rate of mining companies is estimated at about 60%. Changes in operation rates affect the recovery rate of non-ferrous minerals, which in turn impacts Senotec's sales.
Senotec is pursuing business diversification based on accumulated technology and know-how in the ceramic materials field. In addition to ceramic beads, it produces ceramic flux used in special welding for shipyards and chemical plants, as well as ceramic powders used in the manufacture of household ceramics and tiles, supplying these to domestic and international companies. Recently, it succeeded in developing a carrier for catalysts, one of the next-generation revenue sources. Carriers, essential materials in the petroleum and chemical industries, are a type of vessel that stores catalysts which facilitate chemical reactions. They ensure that catalysts are not damaged during processing and perform optimally. Previously fully dependent on imports, the domestic market alone exceeds 600 billion KRW. Senotec is expanding a dedicated ceramic carrier production plant and filed related patents in December last year, preparing for mass production.
Huh Myung-gu, CEO of Senotec, explained, "Due to Japan's export regulations and other factors, domestic companies' awareness of key component materials has changed, creating opportunities. New demand has emerged from domestic large corporations that use catalysts in large quantities and catalyst manufacturing specialists."
Senotec is also considering entering the electric vehicle parts market. It has begun research to produce ceramic bearings to replace existing steel bearings. Through advanced research on various future revenue sources such as high-performance heat dissipation materials and recyclable desiccants, Senotec is leading Korea's technological independence and pioneering new markets.
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