Dynamic Design, Overseas Subsidiary Normalization and Full-Scale Plant Operation

Dynamic Design, a company specializing in tire molds, announced on July 8 that it expects to enhance its global competitiveness due to the normalization of its overseas subsidiaries and the full-scale operation of its factories.

The Romanian subsidiary (DYNAMIC DESIGN EUROPE RO S.R.L.) recorded sales of 15.3 billion KRW last year, marking a 43.0% increase compared to the previous year. Its net loss was 2.4 billion KRW, significantly narrowing the deficit.

A company representative stated, "The Romanian entity experienced a temporary decline in performance due to COVID-19 and geopolitical risks, but following restructuring and investments in production efficiency in 2023, a full-fledged recovery trend has been underway since last year."

Last year, Dynamic Design converted its accounts receivable related to the Romanian subsidiary into capital. The representative explained, "Through the conversion of accounts receivable into capital, the Romanian subsidiary was able to improve its equity ratio and strengthen conditions for external borrowing."

Dynamic Design expects overseas sales to rise with the full-scale operation of its Cirebon plant in Indonesia, which was completed last month. The Indonesian plant is expected to serve as a strategic base to respond to the low-cost Chinese tire mold market.

The representative said, "The Indonesian plant is a new hub that can restore customer trust based on price and delivery competitiveness. The temporary loss resulting from the plant's establishment is due to initial fixed costs and investment expenses. As mass production ramps up, order-based sales will be reflected sequentially."

In particular, most of the funds raised locally for the construction of the Indonesian plant are long-term facility funds with maturities of five to ten years. The company added that principal repayment is deferred for the first two to three years, so the short-term repayment burden is limited.

The representative added, "Going forward, we will continue to pursue our mid- to long-term strategies of production base optimization, financial soundness, and restoring market trust," and stated, "Related results and information will be disclosed faithfully and transparently in accordance with relevant laws and regulations."

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