Paratech to Spin Off Equipment Business Division... "Strengthening Business Competitiveness and Enhancing Management Efficiency"

[Asia Economy Reporter Jang Hyowon] Paratech is undertaking a corporate governance restructuring by splitting its business divisions to actively respond to market changes and strengthen business competitiveness.

Paratech, a specialized fire protection products company, announced on the 2nd through a public disclosure that it has decided to spin off its equipment division to enhance business competitiveness and improve management efficiency in line with the advancement of the fire protection industry. After the split, the manufacturing division will remain as the surviving corporation, while the equipment division will be newly established as an unlisted company named ‘Hurim Engineering.’

Paratech has been operating both the manufacturing division, which produces fire protection equipment such as sprinklers and fire valves, and the equipment division, which installs these fire protection systems. Through this split, Paratech plans to improve the profitability of the manufacturing division while strengthening the order-winning competitiveness of the equipment division.

Recently, the fire protection equipment manufacturing market has faced a challenging profit structure due to cost competition and lowest-price bidding, making it difficult to secure funding for new product development. The equipment division is experiencing increasing technical complexity due to the rise of large-scale ESS facilities and data centers incorporating electrical and electronic technologies, as well as the growth of large logistics warehouses and super high-rise buildings.

In response to these changes in the fire protection market environment, Paratech aims to create an environment for sustainable growth by splitting the two business divisions into separate companies, securing expertise in each division, and enabling efficient management.

After the split, Paratech plans to actively pursue the fire protection equipment manufacturing business based on new products such as road tunnel-type water spray heads, high-capacity sprinklers for warehouse facilities, and Early Suppression Fast Response (ESFR) sprinklers for early fire suppression. The company explained that it will develop technologies that meet market demands and strengthen the technological capabilities of fire protection equipment through patent applications and registrations.

A Paratech representative stated, “As the company has grown, it has become difficult to respond flexibly to market changes, so we decided to split the two business divisions, which have significantly different business contents. Through this organizational restructuring, we plan to implement technology advancement suited to the market and establish a foundation for a new leap forward based on management efficiency.”

Founded in 1973, Paratech has been producing fire protection equipment products such as sprinklers, fire valves, and fire piping. Paratech was the first in Korea to obtain national certification for fire protection products in 1975, and since 2000, it has led the market by verifying its technological excellence and quality superiority through overseas certifications such as UL and FM for new piping, sprinklers, and valves.

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