Kolon Plastic Reports Q2 Sales of 131.6 Billion KRW and Operating Profit of 11.5 Billion KRW

[Asia Economy Reporter Donghoon Jeong] Kolon Plastics recorded its highest quarterly performance ever, driven by growth in the engineering plastic 'POM' sector.

On the 3rd, Kolon Plastics announced that its consolidated sales for the second quarter of this year increased by 31.4% compared to the same period last year, reaching 131.6 billion KRW, and operating profit rose by 38.5% to 11.5 billion KRW.

Regarding the strong performance, the company stated, "The global transaction share of POM has significantly increased," adding, "Global demand for POM has grown by nearly 50% over the past decade, but there has been almost no large-scale expansion in the world market, causing severe supply shortages. There are also no large-scale expansion plans in the industry for the next five years."

POM is mainly applied to drive components such as gears in various fields including automobiles, electrical and electronic products, household goods, and industrial machinery due to its excellent rigidity and wear resistance.

Specifically, in the automotive sector, it is used in safety belt buttons, window drive devices, and fuel pumps.

Bang Minsu, CEO of Kolon Plastics, explained, "In the second quarter, external market conditions rapidly changed due to rising energy costs caused by the Ukraine war, lockdowns in China, and a contraction in the home appliance market, which led to inventory adjustments starting in May. However, profitability was strengthened as the share of transactions with global major customers significantly increased."

He added, "Going forward, we will focus our management capabilities on developing high-quality, high-performance products and securing supply stability."

Kolon Plastics is strengthening cooperation with global major customers to explore expansion in the compound business and new businesses.

The company plans to use this as a foothold to expand the compound business, which had a relatively high domestic market share, into overseas markets, and to further strengthen cooperative projects such as jointly developing special new materials, the next-generation growth engines, based on the future demand of global customers.

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