Ha Seong-yong, CEO of #Airrane Co., Ltd., made these remarks regarding the company’s mid- to long-term growth strategy during a recent investor relations (IR) briefing held at the new factory in Cheongju, North Chungcheong Province. The company plans to expand its business scope—currently centered on gas separation membrane modules, which account for 70–80% of revenue—to include biogas upgrading, carbon dioxide capture (CCUS), and ionomer recycling. To this end, the company plans to gradually expand production lines at its new Cheongju plant, increasing annual module production capacity (CAPA) from the current 40,000 units to 80,000 units by 2027.
At the new 15,500-square-meter (approximately 4,700 pyeong) Cheongju plant visited that day, cylindrical modules containing gas separation membranes were being produced. Airrane Co., Ltd. acquired the plant last year, completed internal renovations, and began full-scale operations this year. In the future, the facility is also scheduled to produce hollow fiber modules and new products for applications requiring high pressure and performance.
Founded in 2001, Airrane Co., Ltd. is the only company in South Korea that develops and manufactures gas separation membranes in-house, and ranks fifth globally in terms of production capacity. Gas separation membranes are materials that selectively separate specific gases, such as nitrogen and carbon dioxide, from mixed gases. The company’s flagship nitrogen-generating modules are used to prevent explosions in coal mines, petrochemical plants, shipbuilding, and aviation. In China, the company supplies these modules to coal mines, petrochemical and natural gas facilities, and electric buses.
The key point emphasized at the event was the expansion of production capacity. The existing Ochang plant operates 12 hollow fiber production lines, with a capacity utilization rate that is effectively close to 100 percent. Just over a year after increasing the number of production lines from 6 to 12, most of the additional output has already been sold out. The company plans to first add 6 lines at its Cheongju plant and eventually expand the total number of production lines to 24.
The European shipping market was cited as the primary source of new demand to fill the expanded production capacity. Starting in the second half of this year, the company will begin supplying major European manufacturers of nitrogen generation systems for ships. Nitrogen is required to reduce the risk of explosion when transporting liquefied natural gas (LNG) or chemicals on ships. The company explained that gas separation membranes offer a competitive advantage in mobile facilities—such as ships and aircraft—where space and weight constraints are significant.
Airrane Co., Ltd. stated, “Although these are not long-term contracts, we believe we can fully absorb the expanded production volume because our clients’ replacement needs arise on a regular basis.” Initially, the company will share supply lines with existing global manufacturers, but its strategy is to expand market share in the future by offering customized products tailored to client needs and leveraging price competitiveness.
Last year, Airrane Co., Ltd.’s revenue reached 28.08 billion won, a 14.6% increase from the previous year, while operating profit rose 65.1% to 3.09 billion won. In the first half of this year, revenue and operating profit stood at 13.97 billion won and 1.98 billion won, respectively, representing decreases of 6.1% and 12.0% compared to the same period last year. The company explained that some export revenue was deferred to the second half due to logistics disruptions caused by the deteriorating situation in the Middle East.
Full-year revenue is expected to exceed last year’s level, driven by supplies for European ships and replacement demand for existing nitrogen-generating modules. The company anticipates approximately 30 billion won in revenue from the gas separation membrane module segment alone. Logistics conditions and the timing of revenue recognition for new supply volumes remain variables.
Following the capacity expansion, the company plans to diversify its business structure, which is currently heavily weighted toward modules. In the systems sector, it is expanding its biogas upgrading business, which increases the methane concentration of biogas generated from food waste and sewage to 95% or higher. In South Korea, the Airrane Co., Ltd. system has been implemented at six out of seven biogas upgrading facilities using the gas separation membrane method. The company aims to secure new orders in October and November, including projects that were postponed from the first half of the year.
Ionomer Recycling plans to begin mass production in the second half of next year. This business involves the recovery and regeneration of high-cost PFSA ionomers used in fuel cells and electrolysis equipment; performance evaluations by potential customers are currently underway. The company plans to complete the factory next year to secure an annual production capacity of up to 7 metric tons and expects to generate additional annual revenue of 20 to 22 billion won within two to three years after completion.
In the Carbon Capture, Utilization, and Storage (CCUS) sector, the company has completed technology demonstrations with clients such as LOTTE CHEMICAL CORPORATION; however, policy incentives and regulations are key to the actual expansion of orders. Overseas, the company is reviewing the feasibility of a project in Indonesia to recover oil vapors that would otherwise be discarded or burned to produce hydrogen and electricity and secure carbon credits.
CEO Ha stated, “While membrane module sales currently account for more than 80% of our revenue, we believe that in the long term, the separation membrane, ionomer recycling, and systems businesses will each account for about one-third of our revenue,” adding, “We will expand our business beyond simply supplying materials to create added value through process design, system operation, and carbon credits.”
