Mecaro announced on the 1st of November that it would build a new precursor factory in Eumseong, North Chungcheong Province.
The total amount of investments is 14.3 billion Korean Won. A self-funding investment, without any external support. If construction begins early this month, it will be completed sometime during the first half of next year. When the expansion is completed, the production of the precursor will increase to about 2,000kg monthly, and its capacity will be around 3,500kg per month. The new factory will be equipped with a machine vision system that automatically filters out defects, and a technology to streamline the production process to correct bottlenecks.
"This investment will help us diversify our customer base and increase it in the future," said a representative from Mecaro.” The representative added that “We will not only strengthen our quality and productivity, but will also revitalize the development of next-generation precursors for DRAM and 3D NAND". Mecaro claimed it plans to pursue business growth on a win-win approach with partnering companies through a two-track operation, with both existing and new factories and new factories. The company also plans to cooperate with leading domestic and global research institutes to run a pilot line for coexistence with secondary suppliers.
"This extension is the start of an investment,” said President and CEO of Mecaro Lee Jae-Jung. He added, "Around next year we are also going to expand our heater block production factory in Pyeongtaek, which is currently in a saturated condition."
A precursor is a solvent-like substance before it participates in a chemical reaction that produces another compound. Mecaro precursor is used to produce DRAM, a large memory semiconductor company in South Korea.