Korea Zinc Boosts Efficiency: Onsan Smelter Project Success

Korea Zinc, a global leader in non-ferrous metal production, has successfully completed its 'Onsan Smelter Rationalization Project,' a key initiative undertaken throughout 2024 to strengthen the competitiveness of its Onsan Smelter. This achievement is expected to result in higher operating profits than initially forecasted in its business plan. Let's delve into the specifics of this project and its impact on Korea Zinc's production capacity and output.

The Onsan Smelter Rationalization Project, completed by Korea Zinc, focused on operational process improvements and energy efficiency enhancements. Specific initiatives included implementing a "low-carbon method" to reduce carbon emissions, improving energy efficiency, and strengthening cost competitiveness. These improvements are expected to yield significant results, positively impacting profitability and operating margins.

Korea Zinc's Onsan Smelter Project, completed in 2024, has significantly boosted efficiency and cut costs, leading to higher operating profits than initially forecasted. The project, aimed at strengthening the competitiveness of the Onsan Smelter, implemented improvements in operational processes, enhanced energy efficiency, and strengthened cost competitiveness. As a result, Korea Zinc expects operating profits to exceed its original business targets for the year. The company has maintained profitability for 99 consecutive quarters since 2024, achieving an annual operating margin of approximately 10%. However, the company faced global uncertainties in 2024, including the ongoing Ukraine war, rising energy costs (electricity and coal), and falling treatment charges (TC), which increased raw material expenses. In light of these challenges, Korea Zinc conservatively projected KRW 6.828 trillion in sales and KRW 1.245 trillion in operating profit for 2024. Despite these challenges, the Onsan Smelter Project has enabled Korea Zinc to maintain its profitability and strengthen its position in the global non-ferrous metal market.



Korea Zinc's Onsan Smelter Project has led to a significant increase in annual lead-smelting capacity, from 300,000 tons to 430,000 tons, surpassing its Chinese rival. This project has resulted in a 33% reduction in related costs, contributing to a KRW 3 billion savings. The success of this project is attributed to strong labor-management cooperation and the company's commitment to maintaining its smelters' competitiveness amidst global challenges.



In conclusion, Korea Zinc's Onsan Smelter Project has been a resounding success, boosting efficiency and cutting costs. The project's focus on operational process improvements, energy efficiency enhancements, and cost competitiveness strengthening has resulted in higher operating profits and a strengthened position in the global non-ferrous metal market. Korea Zinc's commitment to maintaining its smelters' competitiveness amidst global challenges has been instrumental in this success. As we look to the future, Korea Zinc is well-positioned to continue its strong performance and maintain its profitability.

Disclaimer: Action AlertsPLUS, managed by the article's co-writer, holds no positions in any mentioned securities.