Target in the early half of KRW 1 trillion in sales
Ecopro BM, a mid-sized battery cathode material maker in Korea, has upgraded its facility investment (CAPEX) this year. It plans to invest 24 billion won, an increase of 20%. Sales are also expected to grow more than 40% this year from 8552 billion won last year.
On the 3rd, Ecopro BM announced in a conference call held after the 4th quarter of last year that it will increase its facility investment to 240 billion won this year. It increased 40 billion won from 200 billion won announced last year. Compared to 100 billion won in 2019, it has more than doubled. KRW 100 billion will be invested in CAM5-N for the production of cathode materials for SK Innovation, and KRW 140 billion will be invested in the new plant of Ecopro EM CAM6, a joint venture with Samsung SDI.
Sales are also expected to reach more than 1 trillion won. This is because battery production continues to increase due to the expansion of electric vehicle (EV) supply. Construction and housing, which were contracted by Corona 19, are gradually recovering, and sales of products such as power tools and wireless vacuum cleaners are one of the reasons. Cylindrical batteries are mainly used in these products. Ecopro BM is supplying nickel, cobalt, and aluminum (NCA) cathode materials to Samsung SDI, the world’s number one cylindrical battery company.
The cathode material capa is 59,000 tons, the same as last year. Next year, 30,000 tons of CAM6 are added, and the capacity is 89,000 tons. Expansion will continue to 180,000 tons in 2025. The Ecopro EM plant will be promoted with CAM6 and CAM7. CAM7 plans to produce 30,000 tons of cathode materials and is expected to invest 150 billion won.
Overseas factories are also being promoted. Overseas subsidiaries were established to establish cathode material factories in the US and Europe. It plans to establish a factory in Hungary first. By the second half of this year and early next year, we have decided to come up with a concrete plan. In Hungary, core customers, Samsung SDI and SK Innovation, have battery plants.
Ecopro BM recorded 8552 billion won in sales and 55.7 billion won in operating profit last year. Compared to the same period last year, sales and operating profit increased by 39% and 50%, respectively.
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