Woosung Metal, Affiliate of Seongan Materials, Supplies Samples for 62 Billion KRW 'Tubing Segment' Contract

On September 4, Seongan Materials (CEO Lim Jongchan) announced that its affiliate, Woosung Metal, will supply samples of "tubing segments" for a contract worth 62 billion KRW (approximately 62 billion won) to a Russian mining company.

Woosung Metal, an affiliate of Seongan Materials, is a casting and foundry manufacturing specialist established in 1996. It is a primary supplier to companies such as Doosan Heavy Industries, Incheon Steel, POSCO, Seah Steel, and Hyundai Steel. In 2024, Woosung Metal became an affiliate when Lim Jongchan, its largest shareholder and CEO, acquired Seongan Materials.

Woosung Metal is a financially sound, unlisted company subject to external audits, having posted sales of 84.14 billion KRW, operating profit of 20.07 billion KRW, and net profit of 16.32 billion KRW in the previous year. Since last year, the company has newly entered the "tubing segment" business, resulting in a 4.2-fold increase in sales and an 8.9-fold increase in operating profit compared to 2023.

"Tubing segments" are steel castings installed in mine tunnels, assembled from block pieces into circular lining rings. They are mainly used by global mining companies during excavation to reinforce tunnel walls and prevent collapses.

A company representative explained, "In the past, Ukrainian casting companies dominated the 'tubing segment' market, but the Russia-Ukraine war destroyed the infrastructure of those factories. As a result, Anglo American, a global mining company based in the UK, began searching for alternative manufacturers and placed its first order with Woosung Metal last year, recognizing our technological capabilities. This new business line enabled us to achieve significant growth."

Woosung Metal is currently in discussions with Anglo American, which contributed greatly to last year's growth, for additional orders of "tubing segments," with a contract expected as early as October. The company is also in contact with multiple global mining firms for new orders.

As a result, the company is supplying samples for a 62 billion KRW "tubing segment" contract with a Russian mining company and is negotiating detailed estimates with a copper mining company in Brazil.

A company official stated, "Seongan Materials, whose main business has traditionally been textiles, achieved a turnaround in the first half of this year with cumulative sales of 9.2 billion KRW and operating profit of 1.6 billion KRW, following a shift to more profitable businesses and improved management efficiency after the change in its largest shareholder last year. We are also considering either a merger with our affiliate Woosung Metal or incorporating it as a consolidated subsidiary by the end of this year, which is expected to significantly improve Seongan Materials' financial structure and performance going forward."

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