Kim Won-jong, CEO of DN Solutions, said, "I will create a global comprehensive manufacturing solutions corporation, a level above the current one, beyond the machine tool market, and make it a company with a net profit of 1 trillion won." DN Solutions is a machine tool manufacturer that recorded a net profit of 299.1 billion won last year. Machine tools refer to machines that make machines.
Kim noted a goal to achieve annual sales of more than 4 trillion won and to become the number one in the machine tool market by 2030. The company plans to use funds raised from its listing on the Korea Securities Exchange (KOSPI) in May to invest in automation solutions and software, as well as artificial intelligence (AI).
Kim held a press conference on the 1st at the BEXCO in Haeundae District, Busan, and said, "Several investments worth over hundreds of millions of won are being carried out to achieve the company's vision," adding, "If we focus the funds raised through the listing on creating automation software and solidify our position in the market, we will become a completely different company in 2 to 3 years."
DN Solutions is building a new factory in Mium, Busan, and a high-end machine tool factory in Changwon, with a goal of completion next year. The company is also constructing a new factory in Bengaluru, India, investing a total of 218 billion won in these three projects alone. Additionally, a 240 billion won investment agreement has been signed to build a high-tech research and development (R&D) center in the metropolitan area. The current R&D personnel count of 498 is planned to increase to over 1,000 by 2031.
To enhance customer service, the company plans to open technical support centers in Mexico and China, and to build logistics centers in the metropolitan area and Yeongnam region to expand inventory and strengthen logistics. DN Solutions aims to invest 488.8 billion won in these facilities by 2027.
DN Solutions plans to accelerate high-end machine tool manufacturing and automation and intelligence of machine tools through large-scale investments. The company supplies machines necessary for customers to produce their products, and is currently selling over 30 products that automate manufacturing processes, such as material input and tool and workbench changes. It plans to increase this number to 50 by the end of the year.
The company also aims to continuously increase the software applicable to the 453 products currently on sale to enhance competitiveness. To this end, it is preparing to launch the second-generation model of its machine tool control system, CUFOS. CUFOS is the operating system to operate machine tools, allowing customers to configure machines according to demand. It will also provide additional features through software, such as collision prevention and automatic identification of wear conditions for diagnostic purposes in tool replacement.
DN Solutions is also investing in software and AI corporations for various software development. Last year, it invested in Carbon Black, an AI corporation based in Korea and the United States, and in 2023 it invested in the CAD/CAM software development company ModuleWorks for machine tools. Kim noted, "We are keeping the possibility of mergers and acquisitions (M&A) of AI corporations open to grow our own platform (CUFOS)."
DN Solutions recorded sales of 2.112 trillion won last year, an increase of 0.5% compared to the previous year. About 80% of this was from overseas sales, with Europe and the Americas accounting for 29% and 24%, respectively, and China contributing 18%, while India and other regions made up about 9%. Operating profit was 410.5 billion won, down about 6% compared to the previous year. Kim said, "Considering that the global machine tool market shrank by about 6% due to the Russia-Ukraine war and conflicts in the Middle East last year, DN Solutions was less affected."