KOSEN Completes Acquisition of Buan Factory for 28 Billion KRW

"Establishing a Stable Production Base through Securing Own Factory"

Stainless steel pipe manufacturer Kosen (CEO Kim Kwang-su) announced on the 12th that it has completed the acquisition of the entire site and factory facilities of the Buan plant in Jeollabuk-do from Gilsan ST (CEO Jung Gil-young).

The Buan plant was originally a factory built, owned, and operated by Kosen, but Kosen's former management transferred it to Gilsan ST due to financial reasons and entered into lease and subcontracting agreements. Recently, during the process of business normalization, Kosen has shown its intention to secure the plant again under its own name.

The total acquisition amount is 28 billion KRW. According to Kosen, the transfer contract was signed on June 30 of last year, and the final payment was completed on the 10th.

Regarding the factory acquisition, the company stated, “By securing our own factory, a stable facility investment and production base will be established,” and added, “Additionally, it is expected that operating costs will be reduced by more than 700 million KRW annually due to rent savings.”

Kosen is a stainless steel pipe manufacturing company with over 50 years of experience, supplying stainless steel pipe products to major domestic companies such as Samsung Electronics. Stainless steel pipes are considered essential products for the construction of semiconductor production facilities and petrochemical production facilities.

In particular, stainless steel pipes used in gas transport and distribution lines within semiconductor processes are high value-added products that require high cleanliness to maintain the high purity of gases along with ensuring the airtightness of welded joints. Kosen has secured major global classification certifications including those for semiconductor use and is stably operating its pipe business by reliably supplying pipes for shipbuilding.

A company representative said, “With the acquisition of the Buan plant, we will expand the current production capacity of high value-added products to an annual scale of 26,000 tons and further strengthen competitiveness through smart systems.”

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