Operating Profit Reaches 110.5 Billion KRW in 2024... Up from Previous Year
OCI Announces Liquidation of Underperforming OCI China Business
"High Demand for Silicon Anode Materials... Expansion Discussions Underway"
OCI announced that its consolidated operating profit for 2024 was recorded at 110.5 billion KRW. Since OCI was newly established after spinning off from OCI Holdings in 2023, it is difficult to accurately compare the performance with the previous year, but considering adjusted results, it is analyzed that last year's operating profit increased compared to the previous year. This year, OCI plans to liquidate subsidiaries with poor sales and expand its advanced materials business, including silicon anode materials.
On the 7th, OCI stated in its earnings announcement, "OCI is maintaining the company stably while achieving at least a minimal level of success." Last year, while generating operating profit in the 100 billion KRW range, sales reached 2.2153 trillion KRW, and net profit was 89.6 billion KRW. The fourth-quarter results recorded an operating profit of 20.4 billion KRW, sales of 519.8 billion KRW, and net profit of 12.4 billion KRW.
OCI changed its plan to invest in expanding semiconductor polysilicon production in Malaysia through a joint venture with Tokuyama Corporation of Japan. The investment entity was changed from OCI to OCI Terrasus, with OCI responsible for post-processing, quality inspection, and delivery. OCI Terrasus is a subsidiary of OCI Holdings and a business corporation located in Malaysia.
OCI President Kim Yushin explained on the day, "It has been about a year and a half since the investment contract was signed at the end of 2023," adding, "Steady operating cash flow should occur, but as this part has decreased, we have been considering more aggressive investments." He continued, "We minimized risks and assessed investment efficiency at the group level. After building up our strength, we will continue to invest in new fields."
OCI forecasted that the market conditions for semiconductors and major products will gradually improve in the second half of the year. In line with this, the company expressed its determination to secure profitability through production efficiency, sales expansion, and cost reduction. OCI emphasized the importance of maintaining the company’s soundness and announced plans to liquidate OCI China, which has poor sales and is operating at a loss. Additionally, OCI stressed accelerating the transition to high value-added products by increasing specialty products.
As a key plan for this year, OCI stated it will expand its advanced materials business, including silicon anode materials and phosphoric acid. OCI mentioned that demand for silicon anode materials is high and that discussions are underway regarding the expansion of related special materials factories. OCI is scheduled to complete a special materials factory for silicon anode materials in the first half of this year. Furthermore, the company announced that it has secured additional customers for phosphoric acid sales.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
