KUKDO

Kukdo Records Historical High Quarterly Revenue and Operating Profit

Q1 2021 Business Performance Announcement

■ Q1 Business Performance

- Revenue: KRW 310.5 billion (10.3% increase YoY)
- Operating profit: KRW 26 billion (166.3% increase YoY)

■ Q1 Review

- The global epoxy resin market was recovering following economic recovery from the increase in demand for construction industry which had been stagnant from the COVID-19 pandemic. Also, profits improved as prices getting increased from shutdown of competitors' production facilities.

- Performance improved by increasing the sales of high value-added products such as eco-friendly products.

   
■ Key information

The heavy snowfall and record breaking cold weather in Texas early this year caused global epoxy companies Olin and Hexion to shutdown and declare force majeure, resulting in supply imbalance and sharp rise in the price of epoxy resins. 

Although, kukdo was faced with difficult situation to secure raw materials due to shortage of BPA. Kukdo strived to maintain stable supply and sustain competitive price by reserving raw materials for production. In addition, kukdo increased sales of high value added products such as environmental friendly products. This resulted in the highest quarterly performance in the history of kukdo. 

In addition, not only the epoxy plant in India, capacity of 40,000 tons/year runs operations, but also the polyol plant in Ningbo, China, is under construction which will be completed and start commercial operations in the second half of the year 2021. This overseas expansion of business in India and China, as well as the additional construction of epoxy plant in Korea, are further expected to enhance our competitive advantage.