SeAH Changwon Integrated Special Steel Corp (SeAH CSS) is expected to close this year with its best profits since joining the South Korean steel giant Posco’s SeAH group six years ago.
The company’s operating profit is estimated at 106.0 billion won ($ 89.6 million) on sales of 1.46 trillion won for the full year of 2021, according to sources at SeAH. Holdings Corp and the financial sector Thursday. The two figures are said to be records since 2015, when the SeAH Group acquired the steelmaker from a larger counterpart Posco for 1.1 trillion won.
Its quick selling result was projected as it reported operating profit of 48.7 billion won on sales of 695.0 billion won for the period January to June. Half-year operating income was above the five-year annual average of 45.8 billion won.
SeAH CSS, which produces stainless steel, carbon alloy steel, wire rod and other steel products, was in the red, posting a loss of 8.9 billion won in the first quarter of 2015, just before the SeAH group took over the Posco unit. The SeAH Group, however, managed to turn the business around to end 2015 with a profit of 42.0 billion won. Since then, the special steels unit has continued its solid growth to further consolidate its parent company SeAH Besteel Corp.
SeAH CSS had become responsible for 93% of the consolidated operating profit of SeAH Besteel in 2019, up sharply from its contribution of 32% in 2017. The special steels unit generated operating profit of 28.0 billion won in 2020 and helped significantly improve the bottom line of its parent company. . SeAH Besteel has been on a downward spiral since 2018 amid increasing competition and a global economic slowdown. But this year, the parent steel company is expected to report a consolidated operating profit of 281.8 billion won.
SeAH CSS has received a massive makeover under the SeAH group. The activities straddling the divisions of SeAH Besteel have been eliminated and its product portfolio has been expanded to offer wider varieties according to the needs of customers ranging from car manufacturers to shipbuilders.
Last month, SeAH CSS signed an agreement with Saudi Arabian Industrial Investments Company (Dussur) to set up a $ 230 million joint venture to build the country’s first stainless steel steamless pipe and tube production plant in the Middle East. -East. Dussur’s largest shareholder is Aramco, the world’s largest energy and chemicals company.
By Lee Yu-sup and Cho Jeehyun
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