[Edaily Reporter Kim Hyung-il ] YulChon co., Ltd(146060), a company specializing in precision drawn steel tubes for the automotive industry, is expanding its business by establishing in-house production of seamless steel tubes and setting up a production base in Europe. The company’s strategy is to expand production capacity by leveraging the processing technology and overseas customer base accumulated through its existing drawn steel tube business, while broadening its product lineup—currently focused on automotive parts—to include industrial machinery and mining equipment. The company plans to increase the proportion of high-value-added products and diversify its growth base through in-house production and overseas localization.

On the 27th, YulChon co., Ltd invited E-Daily to its Hwaseong Seamless Steel Pipe Plant in Hwaseong, Gyeonggi Province, to introduce its new production facilities and business strategy. YulChon co., Ltd invested 13.7 billion won in the plant to build seamless steel pipe production facilities with an annual capacity of 18,000 metric tons (t). Seamless steel pipes are manufactured without welded seams and are used in automotive parts, industrial machinery, and mining equipment, where strength and pressure resistance are critical. YulChon co., Ltd plans to begin production next year with 7,700 metric tons and increase output to 15,500 metric tons annually by 2031.

This investment in new facilities is significant in that it expands the production methods of the company’s existing seamless steel pipe business. YulChon co., Ltd. currently sources finished seamless steel pipes from China and sells them as products for Canadian mines. Going forward, the company plans to increase the added value generated during the manufacturing process through in-house production and expand supply by leveraging its existing sales network. It also plans to diversify its product portfolio by expanding applications beyond automotive parts to include industrial machinery and mining equipment.

The seamless steel pipe business is built on the company’s existing precision drawn steel pipe manufacturing technology. Drawn steel pipes are products processed by passing steel pipes through a die and plug to meet precise specifications—such as outer diameter and wall thickness—required by customers. At the facility, we observed the entire production process—from the drawing process, which shapes the steel pipes to the required specifications, to subsequent processes such as automatic straightening, non-destructive testing, and cutting. YulChon co., Ltd highlights its competitive edge as its ability to produce a wide variety of specifications in small batches tailored to individual customers, along with its rapid response capabilities.

YulChon co., Ltd’s products are used in automotive shock absorbers, suspensions, steering systems, and vehicle frames. According to YulChon co., Ltd, approximately 95% of its total product output is currently used for automotive parts. With a product lineup suitable for both internal combustion engine vehicles and electric vehicles, the company plans to expand its customer base into other industrial sectors while building on its existing automotive parts business. A YulChon co., Ltd official explained, “We will expand the scope of our product applications based on our drawing technology, accumulated over many years, and our production capabilities tailored to customer-specific specifications.”

Expanding overseas production bases is another pillar of the company’s growth strategy. Sales at YulChon co., Ltd.’s Mexican subsidiary increased from 200 million won in 2016 to 51.3 billion won in 2025. The Mexican subsidiary performs tube forming—shaping steel pipes to meet customer requirements—and drawing—processing materials to precise specifications—with an annual production capacity of 24,000 metric tons for tube forming and 22,000 metric tons for drawing. The rolling process involves rolling steel sheets or coils into steel pipes of a specific shape, such as circular. The Mexico subsidiary has grown into a production hub targeting the North American market, and YulChon co., Ltd is applying the production processes and automation technologies it has accumulated in Korea to its overseas facilities as well.

The Polish subsidiary, established in 2022, serves as a production hub for penetrating the European market. YulChon co., Ltd aims to complete facility construction by the end of this year and begin mass production early next year. The planned annual production capacity is 24,000 metric tons for tube forming and 16,000 metric tons for drawing. YulChon co., Ltd is also working toward achieving the break-even point (BEP) for its Polish subsidiary by 2028. A YulChon co., Ltd official stated, “In Poland, we have not only existing clients but also potential clients with whom we intend to pursue business opportunities,” adding, “We will expand our supply to the European market by establishing a local production system.”

Financial performance also showed an upward trend. YulChon co., Ltd.’s consolidated revenue for the first half of this year reached 42.86 billion won, a 9.2% increase compared to the same period last year, while operating profit rose 10.6% to 3.23 billion won. In the second quarter, revenue totaled 23.059 billion won, operating profit reached 2.32 billion won, and the operating profit margin stood at 10.1%. Building on the performance of its existing precision steel pipe business, the company is pushing forward with seamless steel pipe production and the expansion of overseas production bases.

The company is also pursuing shareholder returns. In July of this year, YulChon co., Ltd repurchased and canceled 500 million won worth of its own shares, and is considering additional share buybacks and cancellations. The company plans to continue its shareholder return policy alongside business expansion through the growth of high-value-added products and the establishment of a global production system.