by Ryu Hyunseok
Published 13 Jun.2024 13:17(KST)
SBC (Single Board Computer)-based defense industry embedded system specialist, Cots Technology, announced on the 13th that it has completed investment in new production facilities and secured a stable mass production system.
Through this facility expansion, Cots Technology has increased its production capacity by more than 30% compared to before. The company has completed the establishment of a dedicated production line for key products installed in the K2 tank, enabling proactive response to the full-scale overseas export of the K2 tank. In addition, the company plans to continue improving quality and ensuring stable supply by securing additional mass production and quality testing facilities for products involved in domestic weapon system development.
Currently, due to the prolonged Russia-Ukraine war and conflicts in the Middle East, geopolitical tensions around the world have escalated, leading to the highest-ever global military expenditure last year. Amid this, continuous positive developments in K-defense, such as the expected second export contract for Hyundai Rotem’s Polish K2 tank and the signing of the Comprehensive Economic Partnership Agreement (CEPA) between Korea and the United Arab Emirates (UAE), are expected to bring mutual benefits to domestic defense companies as well.
In particular, as communication equipment, display devices, and friend-or-foe identification functions within advanced weapon systems are strengthened, the demand for defense computer devices and embedded computer systems is expected to become more prominent. Accordingly, the importance of advanced defense computers capable of processing vast amounts of data is increasing day by day, and the demand for Cots Technology’s core business, defense embedded systems, is also expected to continue growing.
Jow Ji-won, CEO of Cots Technology, stated, “With this production facility expansion, the company has completed preparations to smoothly respond to the continuously increasing overseas exports and mass production, as well as to improve product quality.” He added, “Through stable product production and excellent embedded system technology, the company will continue to do its best to enhance the status of K-defense.”
Meanwhile, Cots Technology’s performance in the first quarter of 2024 showed explosive growth, with sales of 9.14 billion KRW, operating profit of 1.06 billion KRW, and net profit of 940 million KRW, representing increases of 21%, 448%, and 667% respectively compared to the same period last year.
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