Jisco Holdings Sees 26.7% YoY Sales Growth in H1... Accelerates Performance Improvement

The competitive landscape of the domestic low-carbon steel wire rod manufacturing industry is expected to undergo a major shift due to the deepening management crisis at Kosteel, one of the two leading companies in the sector. As Kosteel is moving forward with the sale of its steel wire rod and wire rod processed product manufacturing business, its competitor Jisco Holdings is expected to benefit from this situation.

According to the Financial Supervisory Service's electronic disclosure system on August 18, Jisco Holdings recorded consolidated sales of 18.6 billion won in the first half of this year, a 26.7% increase compared to the same period last year. During the same period, operating losses decreased by about 16% year-on-year, indicating a gradual recovery in profitability.

This growth in performance is believed to be driven by an increased market share in the domestic steel wire rod market. With the acquisition of new clients and an expansion in order volume in the second half of the year, the steel business division is expected to see accelerated improvement in its results.

A significant portion of the domestic steel wire rod supply market, previously handled by Kosteel-one of the two major companies-is expected to become vacant. In May, Kosteel received court approval from the Seoul Bankruptcy Court to begin rehabilitation proceedings and plans to sell three factories in Pohang, which were responsible for steel wire rod and processed product manufacturing, as well as its branch in Vietnam.

As Kosteel's major clients are seeking alternatives to ensure stable supply, this situation is viewed as an opportunity for Jisco Holdings. Jisco Holdings is expected to absorb new demand due to its production capacity and competitive quality.

An official from the securities industry commented, "Kosteel's withdrawal from its manufacturing business will bring about a significant change in the structure of the domestic steel wire rod market. If Jisco Holdings actively pursues sales and expands its supply chain, it is expected that sales growth and profit improvement will become even more pronounced starting in the second half of the year."

A representative from Jisco Holdings stated, "We are already seeing the benefits of our competitor's exit from the market in our steel business division. In the second half of the year, we will focus on strengthening our production and distribution capabilities to expand our client base and increase sales in the steel business division."

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