Kenkoua Aerospace Q1 Sales 20.5 Billion Won... "Entering Full Growth Track with 130 Billion Won Investment"

Kencoa Aerospace announced on the 16th that it achieved sales of 20.5 billion KRW in the first quarter. Operating loss for the same period was 1.2 billion KRW.

In the first quarter, Kencoa expanded and relocated its US LA-based space materials specialist company, California Metal, to nearly double its size, responding to the rapidly growing US aerospace materials market. Kencoa USA is currently expanding its facilities due to new orders in the US aerospace and defense sector.

The Korean headquarters is also actively expanding production facilities to promote several new projects with domestic and international clients, including the recently secured Embraer project. Expansion design for Sacheon Plant 1 and Plant 2 has been completed, planning to nearly double the existing production capacity.

Last month, Kencoa secured sufficient funds for business expansion and growth by completing the payment of 130 billion KRW in perpetual bonds. Upon issuing these perpetual bonds, CEO Min-gyu Lee contributed all Kencoa shares held to the SPC as an in-kind contribution. Through this in-kind contribution, the SPC secured 50% of the voting rights, and it is analyzed that CEO Min-gyu Lee firmly secured management control over Kencoa.

Kencoa expects more order opportunities thanks to a favorable market environment. The global aerospace value chain is rapidly being restructured, and production of commercial and defense aircraft is steadily increasing. While the industry is growing overall, the company explains that having secured a large fund of 130 billion KRW, it continues to receive love calls for new projects from numerous global companies.

CEO Min-gyu Lee of Kencoa stated, “Kencoa has seized a very clear opportunity to grow significantly in terms of market environment and funding,” adding, “Large customers and major business opportunities are being created in both the defense and commercial aircraft sectors.”

He continued, “At this moment when the global aerospace value chain is rapidly being reorganized, it is a very good opportunity for us to secure better projects and grow faster.”