[Special Stock] Aluco Rises on News of Exemption from US Reciprocal Tariffs

Aluco's stock price rose 4.85% to 2,160 KRW as of 9:30 AM on the 4th in the KOSPI market. This appears to be thanks to the news that aluminum was excluded from the U.S. reciprocal tariffs announced the previous day.

Founded in 1956, Aluco is currently the largest aluminum extrusion company in South Korea. Until the 1990s, it focused mainly on building materials, but since the 2000s, it has successfully diversified its business into aluminum materials and components used in displays, mobile devices, solar modules, railway vehicles, automotive parts, and ships. Since 2020, it has secured new growth engines by supplying electric vehicle battery module cases to battery companies such as LG Energy Solution and SK On.

The previous day, the U.S. White House announced the imposition of reciprocal tariffs of several tens of percent on major countries worldwide but stated that some items, including aluminum, would be excluded from these reciprocal tariffs. Since steel and aluminum are already subject to a 25% tariff under Section 232 of the Trade Expansion Act, this measure was interpreted as an effort to prevent "double taxation" caused by additional reciprocal tariffs.

In addition to the exclusion from reciprocal tariffs, Aluco's expansion of local production in the U.S. also drew attention. At the end of last year, Aluco announced the establishment of a 52.2 billion KRW aluminum battery case manufacturing plant in Jackson, Tennessee. Accordingly, sales in the battery materials sector are expected to more than double over the next two years.