Ecopro Achieves Four Consecutive Quarters of Growth... Second-Phase Indonesia Investment Begins in Earnest

Consolidated Sales of 959.7 Billion Won and Operating Profit of 149.9 Billion Won in Q3
Second-Phase IGIP Investment in Indonesia
Business Diversification and Cost Innovation

Ecopro reported improved results in the third quarter of this year, driven by investment gains from Indonesia, marking four consecutive quarters of growth in both sales and operating profit. Ecopro stated that the benefits from the International Green Industrial Park (IGIP), which marks the second phase of its investment in Indonesia and will begin in earnest at the end of this year, are expected to continue driving profit improvements.

Ecopro CI

On November 5, Ecopro announced that its consolidated earnings for the third quarter of this year reached 959.7 billion won in sales and 149.9 billion won in operating profit. Compared to the same period last year, sales increased by 61.5%, and the company turned a profit, recording operating profit for three consecutive quarters this year.

Ecopro explained, "The results were influenced by the performance of the first-phase investment in the Indonesia Morowali Industrial Park (IMIP)." Since 2022, Ecopro has invested approximately 700 billion won in four nickel smelters located in IMIP. This year, the acquisition of Green Eco Nickel (GEN) and the ESG smelter was completed, resulting in a significant increase in operating profit due to investment gains.

The holding company Ecopro's own business also contributed to the group's growth. In the third quarter, metal trading (51 billion won) and investment-related income (13.5 billion won) totaled 64.5 billion won, representing an increase of about 48% from the previous quarter (43.7 billion won). Ecopro secures nickel intermediate products (MHP) according to its equity stakes in the four nickel smelters and sells them externally, generating trading profits, equity gains, and investment income such as loan interest.

Ecopro BM, which manufactures cathode materials, recorded 625.3 billion won in sales and 50.7 billion won in operating profit in the third quarter. Although sales slowed due to customer inventory adjustments, the company posted a profit for three consecutive quarters thanks to investment gains from Indonesia and increased sales of nickel cobalt aluminum (NCA) cathode materials for energy storage systems (ESS).

Ecopro Materials, which produces precursors, recorded 63.2 billion won in sales and an operating loss of 25.1 billion won in the third quarter. However, the acquisition of GEN, a subsidiary of the Indonesian nickel smelter, was reflected in the results, leading to a net profit of 161.9 billion won.

Ecopro HN, which operates an eco-friendly materials business, posted 28.4 billion won in sales and 2.3 billion won in operating profit in the third quarter. Ecopro HN explained, "Sales and profits declined due to sluggish market conditions in the petrochemical and steel sectors, which are key downstream industries."

Meanwhile, following improved results from the first phase of its investment in Indonesia, the Ecopro Group will begin the second phase of investment in earnest at the end of the year. The company expects that once the second phase of investment is completed, the improvement in results will far exceed the annual average profit of 180 billion won generated by the first phase. The second phase of investment in Indonesia will involve smelter investment and the establishment of a cathode materials value chain within IGIP on Sulawesi Island, Indonesia. The first phase of IGIP investment is being carried out through a joint venture with global companies such as Indonesia’s state-owned PT Vale Indonesia, with Ecopro securing about a 20% stake. From the second phase onward, Ecopro plans to secure a majority stake and take the lead in IGIP construction projects.

Combining the first and second phases of IGIP investment, annual production of nickel intermediate products will reach 130,000 tons, and Ecopro plans to secure 50,000 tons of offtake from this total. If the second phase of investment in Indonesia is completed, the Ecopro Group expects to generate annual profits exceeding those from the first phase through trading, equity method gains, and smelter operation profits. The investment income secured by Ecopro from the first phase averages 180 billion won per year, consisting of 100 billion won in operating profit from smelter subsidiaries, 50 billion won in equity method gains, and 30 billion won in nickel and other metal trading profits.