Enchem "Continuous Sales Growth Through Expansion of Overseas Orders"

[Asia Economy Reporter Hyungsoo Park] Secondary battery material company Enchem forecasted on the 25th that its sales this year will increase by more than 100% compared to the previous year.

Enchem recorded sales of 369.2 billion KRW on a consolidated basis for the cumulative third quarter this year, surpassing last year's sales of 214.3 billion KRW.

Profitability is also improving. Operating profit for the third quarter this year turned positive at 12.4 billion KRW.

An Enchem official said, "We are actively delivering new products to existing customers," adding, "We have also secured new customers, which led to increased sales."

Enchem is enhancing profitability through measures such as adjusting raw material supply balance, inspecting production lines, and improving yield to boost productivity.

Following the ‘local production-local supply’ strategy, Enchem is diversifying its overseas production bases. It is also securing new supply chains. It has secured production capacity of 100,000 tons across six factories worldwide, including China Plants 1 and 2, Poland Plant, and U.S. Plant 1. Additionally, expansions are underway at U.S. Plant 2, China Plant 3, and Hungary Plant. With the establishment of key production bases, overseas market expansion is expected to gradually increase.

A company official stated, "The annual production capacity of the recently mass-produced plant in Georgia, USA, will be expanded from the existing 20,000 tons to 140,000 tons by 2024." He added, "The China Zhangjiagang Plant (40,000 tons) and Hungary Plant (40,000 tons) are also focusing on expansions, aiming for completion in July and December next year, respectively."

As the electric vehicle and battery markets rapidly grow, demand for secondary battery materials is also increasing. Enchem has established various production bases and plans to increase market share by formulating growth strategies tailored to each base.