As the upward trend in shipbuilding stocks continues in the domestic stock market, the positive momentum is spreading to shipbuilding equipment stocks as well. KSP, a producer of marine engine parts, has recently joined this upward trend, appearing to engage in a "catch-up" rally. In the case of medium-speed engine valves, KSP holds a 60 to 70 percent market share in South Korea. The company possesses proprietary technology, including friction welding methods and specialized forging equipment.
As of 9:57 a.m. on September 4, KSP was trading at 5,990 won, up 10.52 percent from the previous trading day.
KSP mainly produces exhaust valve spindles and exhaust valve complete products, which are essential components for marine engines. Exhaust valve spindles control the inflow and outflow of fluids or gases generated by the operation of marine engines. According to the engine's operating principle, they move vertically to perform opening and closing functions. When open, they release exhaust gases produced by explosions; when closed, they maintain the high-pressure environment inside the engine. The exhaust valve complete is a finished product assembled from the exhaust valve spindle and a cast exhaust valve housing, representing the final form of the exhaust valve spindle. For large engine parts, KSP supplies both exhaust valve spindles and exhaust valve complete products.
Exhaust valves for marine engines are core components that require advanced technology during the manufacturing process. Currently, regarding low-speed engine exhaust valves, only two companies in South Korea-KSP and Geumyong Machinery-have obtained manufacturing approval from MAN Energy Solutions and WINGD. KSP is the only company that handles the entire process in-house and consistently produces high-quality products. With its advanced technology, KSP has earned market recognition for quality and maintains stable business relationships with leading domestic and international engine manufacturers, including HD Hyundai Heavy Industries.
The low-speed engine parts business requires manufacturing approval from global engineering companies to conduct sales activities. To obtain such approval, companies must establish manufacturing facilities that meet the specifications required by each engineering firm. The low-speed engine exhaust valve business is a large-scale equipment industry that requires specialized facilities for welding, machining, and polishing, and is considered a mature industry. The company explained that there have been no new entrants in the domestic or international low-speed engine exhaust valve market recently.
Only five companies worldwide possess both MAN-ES and WINGD certifications and have practical competitiveness: two in South Korea, including KSP, one in Japan, one in Germany, and one in China. These five parts suppliers deliver exhaust valves to engine manufacturers, engine after-sales service companies, and original technology providers.
KSP recently purchased land and buildings in Jisa-dong, Gangseo-gu, Busan. The company stated that this investment is intended to secure production efficiency and prepare for mid- to long-term business expansion.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
