No.1 in Sandwich Panel Market Share
Vertical Integration to Modular Housing Enhances Quality and Price Competitiveness
Modular Advantages Highlighted in NEOM City... Domestic Market Expected to Grow 15 Times
[Asia Economy Reporter Hyungsoo Park] SY, the leading company in the sandwich panel market, is gaining attention in the domestic stock market. The modular construction method project in Saudi Arabia's NEOM City is expected to rapidly expand the modular market size.
On the morning of the 17th, SY's stock price surged more than 20% compared to the previous day. The trading volume exceeded 110 billion KRW.
SY started in September 2000 as Ssangyong Industrial, a specialized manufacturer of prefabricated sandwich panels. It grew by expanding its panel lineup including glass wool and EPS. It is the number one company in the sandwich panel market share. In 2017, it continued external growth by establishing and acquiring color steel sheet manufacturers in Vietnam and Cambodia. In March 2019, it changed its name to SY. The sales ratio by business division consists of sandwich panels 43.1%, deck plates 15.9%, insulation materials (urethane boards) 6.6%, and others (color steel sheets, etc.) 34.4%.
Sandwich panels are divided into fire-resistant EPS panels, G/W panels, urethane panels, and EPS panels according to materials and functions. Due to strengthened building regulations, the sales proportion of the high-priced, fire-resistant G/W panels is increasing every year. Sandwich panels are prefabricated building materials composed of steel sheets and insulation materials, used as interior and exterior materials for buildings. Their application range has expanded from special warehouses requiring insulation to various commercial and industrial buildings such as hospitals and schools.
Sandwich panels provide about 20 times the insulation effect compared to traditional bricks and allow faster construction. SY has completed vertical integration by producing color steel sheets used as steel plates for sandwich panels in-house. The color steel sheet production line was completed in 2014. Most domestic panel manufacturers import Chinese color steel sheets, so SY has secured quality competitiveness.
Based on its know-how in panel manufacturing, SY has entered the modular construction market. Its subsidiary SY Build supplies the panelizing modular housing called ‘Polychem House.’ It has already supplied volunteer accommodations and auxiliary facilities for the Pyeongchang Olympics, as well as wards and health centers in Nepal and North Korea.
Modular construction is a method where panels completed in factories are assembled on-site to complete buildings, significantly reducing construction time, labor, and costs. Since modular housing is also used in the reconstruction projects of Ukraine, where many houses were destroyed due to recent war, the modular construction market is expected to continue growing. SY is also expected to be suitable for NEOM City as it has secured rooftop solar power technology.
As the competitiveness of modular construction methods is highlighted, the related market is rapidly growing domestically as well. According to the Korea Construction Policy Research Institute, the domestic modular construction market is expected to grow to a maximum of 2.22 trillion KRW by 2030 (assuming 2% growth in the construction market and 1% market share for modular). Considering that the domestic modular construction market size was 145.7 billion KRW last year, this forecasts more than 15 times growth over 10 years.
Interest in modular housing is high not only domestically but also overseas. NEOM City, the world's largest smart city, covers a total area of 26,500 km², which is 44 times the size of Seoul. Buildings can be constructed in a short period regardless of hot weather. As a city promoting an eco-friendly smart city concept, it is also advantageous that it can easily integrate advanced information and communication technologies (ICT) such as artificial intelligence (AI), blockchain, and big data.
According to the overseas market analysis firm Market and Markets, the global modular housing market size is expected to grow from 82.3 billion USD (approximately 104 trillion KRW) in 2020 to 108.8 billion USD (approximately 138 trillion KRW) in 2025.
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