On April 14th, at the TPLEX factory in the Si-hwa Multi-Techno Valley in Ansan, Gyeonggi Province, 22 cranes hanging from the ceiling were transporting stainless steel products. TPLEX is sometimes grouped as a 'rare earth theme stock' in the securities market due to its past business in rare metals under TPLEX M-Tech (now absorbed), but processing and distributing stainless steel products is its core business.
The TPLEX factory is divided into four main areas. The C and D sections are where TPLEX's flagship product, stainless steel bars, is processed. The process of straightening and cutting curled stainless steel bars was in full swing. TPLEX holds a 30% market share in the domestic stainless steel bar market, and including imports, the share is said to be in the 20% range.
Behind the C and D sections, CDM facilities that process stainless steel wire (thinly drawn steel) were in operation. In the process of strongly pulling the wire, its strength is increased and it is reborn as a CD-Bar.
Due to the durability and corrosion resistance of stainless steel CD-Bars, they are used as raw materials in various fields, from fittings in the semiconductor industry to liquefied natural gas (LNG) valves and nuclear power facilities. It is said to play a key role in terms of revenue. Kim Young-guk, chairman of TPLEX, said, "I take pride in our products being the highest quality in Korea," adding that "we are also exporting to Taiwan and Japan."
In areas A and B, work was carried out to process hot-rolled and cold-rolled coils imported from POSCO. Since 2021, TPLEX has been designated as POSCO's stainless steel cooperation processing center. The process continued through shear and slitter devices that cut the lengths and widths according to customer orders, and then into the trim that finishes the sides. TPLEX processes and distributes about 2,000 tons per month.
Although TPLEX is a latecomer in the stainless steel plate market, it is putting in considerable effort. This is because the domestic market size for stainless steel plates is about 15 times larger than that for stainless steel bars, shapes, and wire.
TPLEX traces its roots to Taechang Sanghoe, a metalworking shop that opened in 1981 in Munrae-dong, Yeongdeungpo, Seoul. Chairman Kim Young-guk built it into a specialized company for stainless steel products. The current factory was established in 2013. Thanks to the trust of 1,800 customers, it has maintained profitable management for over 30 years. In 2022, it recorded its highest ever sales of 257.7 billion won and an operating profit of 21.3 billion won.
TPLEX also faced difficulties. In 2023, it recorded sales of 251.1 billion won and an operating loss of 1.5 billion won, marking its first annual deficit since its incorporation in 1991. The downturn in the front industries, such as home appliances and semiconductors, which had boomed during the COVID-19 pandemic, had a significant impact. The selling price of stainless steel products fell from 5,631 won per kilogram in 2022 to 5,025 won in 2023. TPLEX's stock price soared to 7,950 won during trading in March 2022, then fell back to the 3,000 won range.
TPLEX focused on strengthening profitability and successfully turned a profit last year, recording sales of 207.5 billion won and an operating profit of 4.8 billion won. TPLEX is emphasizing profitability this year as well. Although it has not yet finalized its accounts, it estimates that it has achieved results similar to last year by the end of the first quarter. However, the domestic economy is not good, and some of the customers are hesitant to place orders due to the tariffs imposed by the administration of Donald Trump in the United States, indicating they cannot let their guard down.
TPLEX is also preparing future growth strategies. The entire area of the TPLEX headquarters in Ansan MTV is approximately 17,000 pyeong. The current factory is 5,800 pyeong in size, and excluding the parking lot, roads, and office buildings, about 8,000 pyeong remains. TPLEX plans to build a second factory of 2,000 pyeong in this space. This is because it judged that there are limitations in managing inventory and distribution within the existing factory.
TPLEX aims to begin construction of its second factory in 2026. Afterward, it is considering moving and expanding its stainless steel bar and CDM facilities to the second factory. It will require an investment of about 10 billion won, and the costs will be covered using the company's resources. As of the end of last year, TPLEX's cash and cash equivalents amounted to 11.1 billion won.
TPLEX set a short-term goal of recovering sales to about 250 billion won by 2027 through the expansion of its business base with the second factory. It is envisioning a blueprint that encompasses advanced materials business beyond stainless steel product processing and distribution by its 50th anniversary in 2031.