Ulsan, South Korea – In the third quarter of 2024, Songwon achieved sales of KRW285.8bn ($204.3m), a 15.3% increase on the KRW247.9bn reported in the same quarter last year. EBITDA was up even more sharply, rising 26.4% from KRW25.0bn in 2023 to $31.6bn in this year’s quarter. These results were achieved, the company said, despite the ongoing challenges in the geopolitical and macroeconomic landscape.
In its performance chemicals division, which includes polyurethanes, revenue was up 15.2% on the 2023 figure, rising from last year’s KRW60.5bn to KRW69.7bn in the quarter this year. Rising logistics and manufacturing costs and intensive price competition negatively impacted export sales, however.
Although stable raw material prices had a positive impact on profitability, it said, it was a challenging quarter for both solution polyurethanes and thermoplastic polyurethanes. There was a drop in volume in this part of the business, primarily as a result of weak TPU export sales in the light of the economic recession, and also the seasonal fall in demand in Korea.
The company expects that global supply and logistics challenges will continue into the fourth quarter, and both market prices and margins will remain under pressure. “Considering the possibility of a potential slowdown caused by global macroeconomic uncertainty, shifting industry dynamics and customers struggling to provide clear forecasts, it is difficult to accurately predict what Q4 will bring,” it said, adding that it will continue to prioritise effective cost management and the optimisation of operational efficiency.
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