DL Chemical’s Q1 OP up 540% on strong sales of high-value products

[Courtesy of DL Chemical Co.]

DL Chemical Co.’s operating profit in the first quarter soared by 540 percent from the same period a year ago on robust sales of high-value-added products.

DL Chemical posted 1.2 trillion won ($875 million) in sales for the first quarter, up 9.9 percent from the same period last year. Its operating profit stood at 117.8 billion won, up 540 percent.

The company attributed the growth to its strategic focus on launching specialty materials.

DL Chemical credits the steady sales of its flagship product, polybutene (PB), and better-than-expected market response to its newly developed polyolefin elastomer (POE) for solar packaging introduced late last year.

POE, a synthetic rubber material made from a combination of polyolefins and elastomers, represents an innovative material for solar panels.

DL Chemical completed a 20,000-ton expansion of its second plant in Yeosu, South Jeolla Province, last year. This expansion increased its annual production capacity to 220,000 tons.

“Rather than engaging in direct competition with China in the global general-purpose plastics market, which could put us at a risk of losing profit, we have been focusing on making ourselves more competitive by developing innovative materials,” said a company official.