Dansuk Industry, which joined the ‘1 trillion won club’ in sales last year, will embark on a large-scale investment and initial public offering ( IPO ) this year. Seeing the global trend of strengthening greenhouse gas reduction regulations as an opportunity, advance the business structure centered on bioenergy, metal materials, and fine chemicals. The goal is to increase sales by 5 times by investing 1.8 trillion won over the next 8 years. I visited Dansuk Industrial’s Shihwa plant and looked into the company’s competitiveness and future blueprint.
◇’Chicken oil as biodiesel’, sold overseas for 330 billion won Inside a building where 18-liter steel oil drums with the trade name
’00 Chicken’ are piled up tightly. When the forklift moved the pallet loaded with oil, a robot arm lifted four of them.
The oil drum containing waste cooking oil was put into a process developed by Danseok Industry and shredded at the beginning. The oil flows down and collects, and the cooking oil is shredded and turned into small scraps that travel along the conveyor belt.
On the 28th, I visited the Sihwa factory of Danseok Industry located in Siheung-si, Gyeonggi-do. I could see with my own eyes the beginning of the alchemy that turns waste cooking oil into biodiesel.
Danseok Industry Deputy Manager Kim Dong-gwan said, “This process was automated by Danseok Industry for the first time in the industry. We created a recycling structure where there is nothing to throw away,” he explained.
The building moved about 50 meters from this place. It is a place where the collected waste cooking oil is reborn as biodiesel. The waste cooking oil is turned in a centrifuge to remove impurities, mixed with methanol, etc. to make biodiesel, and the entire process of refining to increase the purity takes place here. The process was designed to adjust the production rate of glycerin, which is used as a raw material for biodiesel and cosmetics. This is to adjust product production according to market conditions.
Biodiesel production capacity is 60,000 tons per year. Originally completed at 40,000 tons, production capacity was increased by 20,000 tons through optimization. It is such an amazing achievement that the German company that constructed the process actually asked Danseok Industry for the optimization secret and operational know-how.
The Sihwa plant also has a separate process with an annual capacity of 400,000 tons to produce bio-heavy oil and bio-ship oil. Bio heavy oil is mainly supplied to domestic power companies, and ship oil was exported overseas for the first time last year.
This is not the only base for Dansuk Industrial’s bioenergy business. The Sihwa plant removes impurities and receives purified raw materials, and the Pyeongtaek Plants 1 and 2 produce 100,000 tons and 80,000 tons of biodiesel per year, respectively. The biodiesel produced by Danseok Industry is exported to global conglomerates such as BP as well as the four major domestic oil refineries. Danseok Industries is responsible for 70% of Korea’s biodiesel exports. The amount reached 248 million dollars (325.8 billion won) as of last year.
Biodiesel is an eco-friendly fuel produced from waste cooking oil and animal and vegetable oils. If 1㎘ of diesel is replaced with biodiesel, 2.6 tons of greenhouse gases can be prevented.
Countries around the world, including Korea, have made it mandatory to add biodiesel to diesel. As of this year, the mandatory addition of biodiesel in Korea is 3.4%, and the mandatory mixing ratio increases every year.
◇ Increased sales by 5 times due to business advancement
Dansuk Industry recorded sales of 1.997 trillion won and operating profit of 73.3 billion won last year, joining the ‘1 trillion won club’ and recording the highest performance ever. Although word of mouth went viral in the industry as a net company, not many people expected such good results. In 2020, only two years ago, it recorded sales of 590 billion won. He doubled his size in an environment where he was also in a hurry to keep his performance.
Business diversification is cited as the key to rapid growth. Dansuk Industry ‘s core business is the bioenergy sector, the metal material sector centered on lead-acid battery recycling, and the precision material plastic sector centered on PVC stabilizers스포츠토토.
As of last year, the proportion of sales was about 78%, 13%, and 9%.
Although PVC stabilizers have grown as the parent business, the bioenergy and metal material sectors, which have been used as growth engines, have grown rapidly, leading to a successful business reorganization. When entering the bioenergy business in the mid-2000s, there was considerable internal resistance, but Chairman Han Seung-wook led the new business by persuading executives and employees.
Danseok Industry will use this year’s leap as a driving force to take on another challenge for good luck. The current business structure will be upgraded in line with global greenhouse gas reduction regulations.
Kim Jong-wan, CEO of Dansuk Industry Compliance Management, said, “Just as new businesses have grown into our current flagship businesses in the past, we plan to secure another growth engine through new businesses.” is the goal,” he introduced. The bioenergy sector will advance from
biodiesel, heavy oil, and ship oil to hydrogenated vegetable oil ( HVO ), including aviation fuel and bio-naphtha. Compared to conventional fossil fuels, biodiesel emits more than 80% less greenhouse gas emissions. The European Union ( EU ) has made it mandatory to use ‘Sustainable Aviation Fuel ( SAF )’ from 2025.
Dansuk Industry plans to invest 100 billion won by 2025 to build an HVO pre-treatment plant with an annual production capacity of 400,000 tons. In 2026, it will spend 550 billion won to build SAF production facilities with an annual capacity of 200,000 tons.
The metal material business division expands the recycling target to lithium-ion batteries and jumps into material production. Recently , construction of a waste lithium ion battery ( LIB ) recycling plant at the Gunsan Lead Battery Recycling Plant has begun.
Waste LIB processing capacity is 8,000 tons per year, and 5,000 tons of black mass (intermediate processed product) will be produced in the recycling process. LIB overseas including MalaysiaIt even drew a picture that it would secure additional recycling plants and start producing nickel cobalt manganese ( NCM ) precursors and lithium iron phosphate ( LFP ) cathode materials.
In the precision material sector, recycling ( PCR ) and engineering plastics were selected as future food sources. The U.S. state of California mandated that at least 30% of plastic be recycled by 2028. Demand for recycled plastics is expected to increase significantly as the EU bans the use of plastics for daily use.
CEO Kim Jong-wan said, “We plan to invest a total of 1.8 trillion won by 2030, and we will succeed in the IPO at the end of this year and stably raise the investment with internal funds and land collateral.” This total will increase to 5.5 trillion won,” he said.