A-Root Secures 18 Billion KRW Mask Raw Materials... "Capable of Producing 80 Billion KRW Finished Products"

[Asia Economy Reporter Yoo Hyun-seok] A-Route is preparing for the rapidly increasing demand for masks by establishing a production plant with an annual capacity of 300 million units and signing a supply contract for mask raw materials worth 18 billion KRW. This contract alone covers raw materials sufficient to produce 300 million masks. Considering the supply unit price, it corresponds to a scale capable of producing finished products worth over 80 to 90 billion KRW.

A-Route announced on the 8th that it has signed a 18 billion KRW supply contract for dental mask raw materials with the mask raw material company 'Gangjin I&C,' officially starting mask production. Although many companies have entered the mask business, securing raw materials has been difficult, causing production delays. Through this contract, A-Route will be able to supply masks without disruption.

The raw materials covered by this supply contract are 'Spunbond' nonwoven fabric filters with a triple-layer filter structure, which make up the inner and outer layers of masks. Since these materials constitute the inner and outer layers, they are among the most heavily used materials in mask manufacturing. They are also used in protective clothing and function to block fine foreign substances, so demand has greatly increased due to the prolonged COVID-19 pandemic.

An A-Route official said, “Since this contract alone amounts to 18 billion KRW in raw materials, considering the supply price of the final products, the contribution to sales will be significant. We are already in discussions with several companies regarding mask supply, so sales will proceed simultaneously with finished product production.”

He added, “Through this contract, we have stably secured the raw materials, which are the biggest bottleneck in mask production, and have also secured the sincerity of the business. We can supply the quantities currently being prepared for mask exports without any issues.”

On the 6th, A-Route invested 3.5 billion KRW to establish a mask factory with a total area of 1,557㎡. The annual production capacity reaches 300 million units. Considering the mask supply requests currently under discussion, a second expansion is expected to proceed soon.

This content was produced with the assistance of AI translation services.