[Edaily Reporter Shin Ha-yeon ] As steel production increases, particularly in India and Vietnam, Hanchang Industry Co., Ltd.(079170)—a manufacturer of lithium zeolite used in industrial oxygen generators—is drawing attention. Given that the Vacuum Pressure Swing Adsorption (VPSA) method, which enhances production efficiency by supplying oxygen during the steelmaking process, is widely utilized, there is growing interest in whether expanding steel production in Shinhung markets will lead to increased demand for related equipment and materials.

The company’s stock price has also been outperforming the broader market recently. According to MP Doctor on the 15th, Hanchang Industry Co., Ltd.’s stock price rose 4.52% this month, from 5,750 won on the 1st to a closing price of 6,010 won the previous day. This outperforms the KOSDAQ index, which fell 1.8% over the same period.

Hanchang Industry Co., Ltd. produces lithium zeolite used in industrial oxygen generators that employ the VPSA (Vapor Pressure Swing Adsorption) method. VPSA is a process that selectively adsorbs nitrogen from the air to increase oxygen concentration. In this process, the zeolite that adsorbs nitrogen is considered one of the key materials that determine oxygen production efficiency.

According to the company, the nitrogen adsorption capacity of the zeolite produced by Hanchang Industry Co., Ltd. is approximately 29 cc per gram—higher than the 25–26 cc of competing products—and it also features a faster adsorption rate. This product is supplied not only domestically but also to overseas markets, including Southeast Asia.

The recent surge in interest in Hanchang Industry Co., Ltd.’s zeolite business stems from the expansion of steel production, particularly in India and Vietnam. According to the World Steel Association, India’s crude steel production from January to July this year reached 101.1 million metric tons, a 6.1% increase compared to the same period last year. During the same period, Vietnam’s production rose by 28.0% to 17.9 million metric tons.

In particular, Vietnam’s crude steel production in July reached 2.7 million metric tons, a 34.7% increase compared to the same month last year. In contrast, production in China—the world’s largest steel producer—declined by 3.1% to 577 million metric tons from January through July. This indicates a trend where production is increasing in emerging markets such as India and Vietnam, even as China’s steel production declines.

The expansion of steel production is also linked to industrial demand for oxygen. Steel mills supply oxygen to blast furnaces and other facilities to enhance combustion and process efficiency, and VPSA is one of the methods used to produce the necessary oxygen on-site.

In fact, Indian steelmaker JSW Steel announced in its 2025–2026 annual report that it had commissioned a VPSA system to improve oxygen supply efficiency to its blast furnaces. The company also installed an oxygen compressor with a capacity of 6,000 Nm³ per hour to support the oxygen supply required for the process. This is an example of VPSA-based oxygen supply facilities being utilized in actual steelmaking processes in India, where steel production is growing rapidly.

In VPSA systems, the speed and efficiency with which nitrogen is removed from the air directly affect oxygen production efficiency. Consequently, the performance of adsorbent materials—such as zeolites, where nitrogen adsorption capacity and adsorption rate are critical—is considered a key factor in determining system efficiency.

Hanchang Industry Co., Ltd. currently supplies zeolites to overseas markets, including Southeast Asia. If the use of VPSA-based industrial oxygen generation systems increases alongside expanding steel production in emerging economies such as India and Vietnam, demand for related adsorbent materials is expected to grow as well.

An industry official noted, “Given that the VPSA method is already being utilized in actual steelmaking processes, a key point to watch is how the future expansion of steel production will affect demand for oxygen generation systems and related materials.”

Meanwhile, Hanchang Industry Co., Ltd., established in 1985, is a company specializing in functional materials, producing and selling zinc powder, zinc phosphate, lithium bromide, and zeolites. Its flagship products—zinc powder and zinc phosphate—are key raw materials for anti-corrosion coatings that prevent corrosion in ships, containers, and steel structures.

Lithium bromide is used as an absorbent in absorption-type chillers and heaters for heating and cooling systems. Zeolite is a molecular sieve material that selectively adsorbs nitrogen from the air and separates oxygen, and is used in industrial oxygen generators and other applications.