EcoPro Group delays hiring plans amid slow demand

EcoPro BM’s building in Pohang, North Gyeongsang Province [Photo by Yonhap]

South Korea’s EcoPro Group has postponed its second-half recruitment plans for its Pohang site to the first half of next year amid a sharp decline in customer demand.

According to sources on Thursday, EcoPro Group notified prospective candidates for production positions, both entry-level and experienced, at its Pohang Campus that the recruitment has been rescheduled to the first half of next year.

The document application for these positions had already concluded in October.

“Due to recent changes in business conditions, we have adjusted the recruitment schedule to the first half of next year,” EcoPro Group said in a message sent to the applicants. “We will directly inform applicants via email or text when the recruitment process for the first half of next year begins.”

A company official who asked to be unnamed added that the postponement for operational positions on the production line is a result of a downturn in front-end industries such as automotive and battery cell manufacturing.

EcoPro Group had planned to recruit personnel for a 4-team, 2-shift system at its Pohang facility. However, decreased orders for cathode materials from key client battery companies prompted this decision.

Recently, the electric vehicle market growth has slowed down, and with a decrease in lithium prices, cathode material companies have been witnessing lackluster financial performances.

Cathode material companies determine delivery contracts based on sales prices linked to battery cell manufacturers and metal prices. During times of declining lithium prices, they are compelled to sell products made with previously expensive lithium at lower prices, impacting profitability.

EcoPro posted an operating profit of 65 billion won ($50 million) in the third quarter, down nearly 70 percent from a year ago. Its major subsidiary, EcoPro BM, also posted an operating profit of 45.9 billion won, down 68 percent during the same period.