[Edaily Reporter Kim Hyung-il ] Yulchon Precision Tube Co., Ltd. ( YulChon co., Ltd(146060)), a company specializing in precision cold-drawn tubes, announced on the 20th that it has completed the installation of manufacturing equipment for seamless steel tubes at its new plant in Hwaseong. The company plans to shift from its existing business structure, which relied heavily on overseas procurement, to an in-house manufacturing system to strengthen its cost competitiveness and production and quality management capabilities, and to target the high-value-added steel tube market.

The newly installed facility has an annual production capacity (CAPA) of up to 18,000 metric tons (t). YulChon co., Ltd plans to gradually expand production volume, starting with 7,700 metric tons next year, and increase it to 15,500 metric tons annually by 2031. YulChon co., Ltd expects the financial results from the mass production of seamless tubes to be reflected in its financials starting next year.

Seamless tubes are steel pipes without welded seams. Compared to conventional welded steel pipes, they carry a lower risk of defects at the weld and are advantageous for ensuring structural uniformity. As a result, they are used in various industrial sectors that require high strength and structural reliability, such as automotive parts, industrial machinery, mining equipment, shipbuilding, and energy and chemical plants.

With the completion of this facility, YulChon co., Ltd is also seeking to transform its existing business structure. Previously, the company sourced seamless tubes from overseas markets, such as China, and supplied them to customers after drawing and processing them; however, it will now be able to independently carry out the entire seamless tube manufacturing process at its new Hwaseong plant. Through this transition to an in-house manufacturing system, YulChon co., Ltd plans to reduce costs, streamline production and quality management, and lay the groundwork for expanding its presence in the high-value-added steel pipe market.

Going forward, the company plans to combine the Hwaseong plant’s seamless tube manufacturing capabilities with its existing precision cold-drawing technology to increase its supply share in high-value-added industrial sectors such as electric vehicles, industrial machinery, and chemical plants. Through this, Yulchon aims to improve profitability and expand into new markets. The company will also strengthen coordination among its global production hubs. The company envisions linking its Hwaseong plant in Korea, its production hub in Mexico, and its upcoming plant in Poland to enhance its responsiveness to global customers and its competitiveness in securing new orders.

Lee Heung-hae, CEO of YulChon co., Ltd, stated, “The establishment of seamless tube manufacturing facilities in Hwaseong marks a significant turning point in expanding our competitiveness from our existing business focused on precision steel pipe processing into the high-value-added materials manufacturing sector.” He added, “Based on our in-house seamless tube manufacturing capabilities, we will strengthen our cost and quality competitiveness and pioneer new markets through synergies with our global production hubs.” He added, “We will strive to ensure that the returns on our investment are gradually reflected in our financial results through the establishment of a stable production system and the expansion of sales.”