Samyoung M-Tech, a shipbuilding and plant equipment company, is expected to see improved performance next year, driven by a recovery in the shipbuilding industry and the global steel sector’s transition toward eco-friendly practices. In particular, the company’s strengthened market position for its core product, Main Bearing Support (MBS), and the anticipated turnaround of its Chinese subsidiary are seen as positive factors.
According to industry sources on November 27, Samyoung M-Tech secured 100% of the orders for shipbuilding equipment (MBS) placed by HD Hyundai Heavy Industries this year. The company is also working to expand its client base next year to include new suppliers such as Hanwha Engine and HD Hyundai Marine Engine. There are also expectations that orders for ship engines and equipment will increase, driven by strengthened Korea-U.S. shipbuilding cooperation and the MASGA project.
A company representative stated, "The shipbuilding industry, which is our primary market, currently holds a backlog of orders exceeding three years. Since we have already supplied products to Hanwha Engine and HD Hyundai Marine Engine this year, we expect specific order volumes to be confirmed next year."
As of the third quarter of this year, ship engine structural components accounted for 53% of Samyoung M-Tech’s total sales. The company also holds a global MBS market share of approximately 58%. This is why Samyoung M-Tech is considered a top-tier supplier in the global market.
The improved performance of its Chinese subsidiary DSD (100% owned) amid the robust Chinese shipbuilding industry is also cited as a growth driver. Lim Sang-guk, a researcher at KB Securities, commented, "As shipbuilding orders in China increase, DSD’s sales and profit improvements are accelerating. The turnaround of the Chinese subsidiary is expected to have a positive impact on the company’s overall value."
The plant equipment (Pallet Car) segment is also expected to continue its growth trend. As the global steel industry shifts away from blast furnace-based processes to direct reduced iron (DRI) and electric arc furnace methods to reduce CO₂ emissions, demand for high-grade pellets for DRI is increasing. As a result, orders for Pallet Cars, which are core equipment in pellet production processes, are also expected to rise.
In particular, with iron ore-based plant development projects steadily progressing in India, a stable flow of orders is expected to continue next year. There is also analysis that the rising exchange rate will have a positive effect on revenue and operating profit. A company representative emphasized, "Projects continue to emerge, especially in India, and this is independent of the iron ore market conditions."
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