Insulation Korea joins ultra-low-temperature insulation market

[Courtesy of Insulation Korea]

Insulation Korea Inc., which holds an over 90 percent market share in South Korea’s high-temperature insulation industry, has made a strategic entry into the ultra-low-temperature insulation market. CEO Kenny Seung expressed his ambition to become the top company in both high-temperature and ultra-low-temperature insulation markets during an interview with Maeil Business Newspaper on Wednesday.

Located in Seoul’s Seocho-gu, Insulation Korea specializes in designing, supplying materials for, and constructing high-temperature fireproof and insulating facilities for industries such as petrochemicals, gases, and steel manufacturing. Founded in 2008, the company has steadily grown to become the market leader in high-temperature insulation in the country.

Most of Insulation Korea’s clients are from industries that require facilities capable of withstanding high temperatures of up to 1,800 degrees Celsius while maintaining stable temperature levels. The company’s insulation solutions expertise has been tapped for various major projects, including Lotte World Tower, Korea’s tallest building, where the company’s special high-temperature fireproof systems are installed.

Insulation Korea’s insulation materials have also been used in critical structures such as Han River Danginri Power Plant, as well as facilities belonging to major Korean corporations, including Lotte Chemical and LG Chemical.

In a recent development, Insulation Korea won an exclusive supply agreement with American company Alkegen for ultra-low-temperature insulation products, which serve a variety of purposes, including insulating mobile phone cylinders, liquid oxygen storage containers, large-capacity liquid gas tanks, and industrial pipelines.

Seung highlighted the importance of ultra-low-temperature insulation products in the context of using hydrogen as an energy source. “To transport hydrogen gas at temperatures as low as -269 degrees Celsius, effective insulation is essential to prevent gas loss and maintain the required conditions,” he explained.

Insulation Korea’s initial strategy is to import and sell U.S. products while monitoring market conditions., the demand for ultra-low-temperature insulation products is expected to grow as the adoption of hydrogen fuel cell vehicles expands. The company is closely examining the prospects of the future hydrogen vehicle market and considering options including local production and the development of core technologies when the market expands.

Seung also emphasized the significance of ultra-low-temperature insulation products in the context of ESG (Environmental, Social, and Governance) management practices. By facilitating the increased use of eco-friendly energy sources such as hydrogen, ultra-low-temperature insulation products contribute to ESG practices, he said.

Considering that traditional petroleum and chemical industries tend to release a substantial number of pollutants, Insulation Korea is diversifying its business to accommodate the reduced demand for high-temperature insulation in these sectors. One of the results of this diversification is the production of ultra-low-temperature insulation products essential for hydrogen energy usage.

The company anticipates a 30 percent increase in its revenue for 2023 versus last year. Seung pointed out that when oil prices rise, investments in petroleum-related products tend to increase in the Middle East, leading to more overseas market sales for the company. Currently, the ratio of domestic to international sales is 60:40, but Seung aims to boost the international share to 60 percent by expanding export markets to markets including the United States and the Middle East.

Seung concluded by expressing the company’s aspiration to go public once it has a certain level of revenue, hinting at Insulation Korea’s long-term growth and expansion plans.