[BizLeader] Kosen "New Product with Double Margin Rate... Core Business and Profits Grow Together"

Margin Rate Doubled Compared to Previous, Huhyukgwan Second Half Production
Acceleration of New Business Expansion in Superdeck and Vanadium Battery

Kwangsoo Kim, CEO of Kosen.

"We plan to secure future competitiveness through high-margin thick-walled pipes and superdeck businesses, and expand our market share by expanding facilities. We will shake off all past setbacks and make a new leap as a global company."

Kim Kwang-soo, CEO of Kosen, stated this in an interview with Asia Economy at the Gwacheon office on the 26th.

Marking its 50th anniversary, Kosen has changed its company name to IREM and is expanding facilities for producing high-end products. It is also continuously investing in the future by establishing a technology research institute and promoting new businesses.

After changing major shareholders and management in 2022, Kosen has focused on normalizing management. Along with this, by steadily improving quality to meet customer standards, the company achieved its highest sales ever last year since its founding.

Kosen's stainless steel pipes are used across industries, from semiconductor, shipbuilding, and petrochemical equipment materials to ships, aircraft, and automobiles. In particular, the stainless steel pipe products supplied by Kosen for semiconductor factories guarantee weld airtightness and maintain high gas purity with excellent cleanliness. Additionally, Kosen has secured certifications from KR (Korean Register) and major global classification societies to reliably supply pipes for shipbuilding.

According to the company, the thick-walled pipe production facility currently under investment is scheduled to begin operation in the second half of the year. Thick-walled pipes, which have more than twice the margin of existing products, are produced only by a few companies with advanced technology.

CEO Kim said, "Through QSS (Quick Six Sigma) activities in collaboration with POSCO and quality improvements from smart factory transformation, market trust has increased, leading to a balanced increase in sales of all products. One-time costs were fully reflected last year, and this year we aim for growth not only in sales but also in profit margins through high value-added products."

He particularly emphasized the superdeck business. Compared to the existing pipe business, it has high margins and high growth potential, making it expected to serve as a cash cow. The superdeck business, which Kosen completed acquiring in February, recorded sales of 72.4 billion KRW last year, with an average annual growth rate of 46.7% since 2020.

Superdeck is an eco-friendly construction solution that replaces formwork to shorten construction periods and reduce carbon emissions. Regarding concerns about the construction industry, CEO Kim explained, "Although there is some impact, the deck market continues to grow annually despite the construction downturn, driven by the expansion of non-residential buildings such as data centers, logistics warehouses, and commercial facilities. We expect a significant increase in demand once the scheduled interest rate cuts lead to industry recovery."

Kosen is also promoting the expansion of the superdeck business. According to CEO Kim, Kosen plans to enter the construction market through its unique technology and thorough safety management in superdeck. The company also plans to increase market share through active R&D and facility investment.

Furthermore, he mentioned the recently spotlighted vanadium battery new business, stating, "We are planning demonstration tests together with the largest electric power company in Korea and others." The vanadium battery independently developed by XR-B, in which Kosen holds shares, was recognized last year for having the industry's highest output performance.

CEO Kim said, "If the demonstration is successfully completed this year, commercial products are expected to be launched in the second half of next year. To this end, we plan to discuss establishing mass production facilities in cooperation with Jeonbuk Technopark and others."

He added, "Vanadium batteries are considered next-generation batteries more suitable for long-cycle ESS (Energy Storage Systems) than lithium-ion batteries (LIB). As AI, robotics, cloud, and electric vehicle industries develop, data centers and power demand are rapidly increasing, so the ESS market for stable power management will grow explosively."

He continued, "Sales of steel pipes have increased due to the boom in semiconductor and shipbuilding industries, and we will become a company that continuously develops alongside advanced industries such as superdeck, an eco-friendly building material for carbon neutrality, and next-generation batteries."