Kwangmu is changing its main business from network equipment to secondary battery materials. This year, they signed a contract worth more than 40 billion won to supply lithium salt (LiPF6), a raw material for electrolytes. Electrolyte additive factories are also being built additionally. They are also actively pushing ahead Merges & Acquisitions of secondary battery material companies in order to expand technological capability.
Kwangmu has been in the network equipment business under the name of KDC in the past. It has been conducting network integration (NI) and system integration (SI) projects for more than 30 years, including localizing the 1200 bps modem for the first time in Korea and establishing a common financial network.
Kwangmu entered the secondary battery material business by acquiring MI Pharm Jecheon, a company that specializes in secondary battery raw materials at the end of last year. They decided that there was a limit to growth with NI and Si businesses centered around the domestic market.
This year, Kwangmu signed four contracts to supply lithium salt to Enchem’s plants in Korea, US, Poland etc. Total order size reaches 41.3 billion won. Kwangmu expects orders to increase as much as the establishment of the electrolyte supply chain with Enchem.
Kwangmu is also expanding the direct production of secondary battery additives. Kwangmu is currently working on doubling the size of the additive factory located in Jecheon, Chung-buk. It will be operated next year. Kwangmu is also reviewing corporate M&As to strengthen production and technological capabilities for secondary battery materials including additives. While maintaining the existing network business, it has prepared cashable assets such as selling affiliates.
A Kwangmu official said, “we are expecting a synergy effect from using the technology and distribution infrastructure accumulated from the process of manufacturing and maintaining the network equipment in the secondary battery material business. Based on the global network, we will provide a stable supply of lithium salt despite the recent shortage in supply of lithium.
Reporter Yoon-Sub Song sys@etnews.com