[Click eStock] "Yulchon Expects Profitability Improvement with Self-Developed Seamless Tube"

Yuanta Securities analyzed on the 20th that Yulchon is expected to create synergy with its Polish subsidiary through its self-developed seamless tubes.

Hyunsoo Lee, a researcher at Yuanta Securities, explained, "We will complete the national project developing seamless tube (non-welded steel pipe) technology applying 4-roll technology by the end of this year," and added, "We plan to purchase a factory in Mado-myeon, Hwaseong City, and complete the construction of a seamless tube factory early next year."

He continued, "Seamless tubes are expected to be produced from the second half of next year," and added, "From the second half of 2026, we plan to sell only self-produced seamless tubes without parallel imports." Furthermore, he emphasized, "We can expect profitability improvement," and "By supplying seamless tubes to factories in Mexico and Poland, we will enjoy synergy effects."

The researcher also said, "The Polish factory will be completed in the second half of next year and mass-produce products from 2026," and "Sales are expected to begin in the first half of 2026." While noting, "The completion date needs to be monitored due to administrative delays," he predicted, "Yulchon has already secured customers locally in Poland, so European sales will increase once the factory is completed."