[Edaily Reporter Kwon Oh Seok ] YulChon co., Ltd(146060), a company specializing in precision cold-drawn tubes (drawn steel tubes), demonstrated robust profitability by posting double-digit operating profit growth in the first half of this year, despite incurring upfront investment costs related to the construction of a new plant in Poland.

YulChon co., Ltd announced on the 14th via a regulatory filing that it recorded consolidated revenue of 42,860,320,000 won, operating profit of 3,233,620,000 won, and net income of 2,654,440,000 won for the first half of this year. This represents a 9.2% increase in revenue and a 10.6% and 1.4% increase in operating profit and net income, respectively, compared to the same period last year.
These results were achieved despite initial investment costs incurred during the construction of the production base in Poland, thanks to the stable profitability of the domestic headquarters and the Mexican subsidiary. The company has demonstrated the solid foundation of its business by maintaining profitability even while making large-scale investments for future growth.
In the second half of the year, the company plans to further strengthen product competitiveness by leveraging the launch of new production facilities. YulChon co., Ltd will complete the construction of new seamless steel pipe production facilities at its Hwaseong plant this September and begin full-scale commercial production. The strategy is to diversify its product portfolio by adding a high-value-added seamless steel pipe lineup to its existing core business of precision cold-drawn tubes, thereby simultaneously achieving medium- to long-term revenue growth and improved profitability.
Construction of a new plant in Poland to target the European market is also proceeding without a hitch. Once this production base is completed, the company will secure a stable production and supply foundation that enables it to directly target the local European electric vehicle and automotive parts markets.
YulChon co., Ltd plans to enhance its global market responsiveness by establishing three major global production hubs linking South Korea, Mexico, and Poland. The company intends to secure mid- to long-term growth momentum by enhancing product competitiveness through the expansion of high-value-added products and strengthening its penetration of the European market.
Lee Heung-hae, CEO of YulChon co., Ltd, stated, “In the first half of this year, we achieved solid profit growth while making proactive investments for future growth, such as the construction of the new plant in Poland.” He added, “Starting with the launch of the seamless steel pipe facility in Hwaseong in September, we will complete the establishment of our global hubs without a hitch and do our utmost to ensure that these investments translate into tangible revenue growth and enhanced shareholder value.”