Wooree ETI, an electronic component maker, has changed its name to ‘Wooree BIO’ and is seeking out a new frontier in the bio industry. The company also revealed the goal of achieving sales of 50 billion won within three years in the bio-business.
Wooree ETI announced its plan to change its name and plan to launch a plant-based bio-business at a press conference held at the Four Seasons hotel in Gwanghwamun, Seoul on 18th. The company will enter the natural materials business, cultivating medicinal crops and extracting and processing core ingredients in addition to the LGP and PCB businesses.
Wooree ETI CEO Cha Ki-Hyeon said, “There was a difficulty in securing the market due to a rapidly changing IT environment. The expansion of our portfolio is necessary because our affiliates are mostly focused on IT components.” The CEO added, “We will cultivate clean and high-quality crops in plant factories. We will make natural materials, such as health functional foods, cosmetics, and pharmaceuticals, and make ourselves a biotech company.” The sales are expected to start in the second quarter.
Wooree ETI envisioned “a natural materials business based on a closed plant factory.” A plant factory is industrialization of plant cultivation, and it is a space that can control various elements required for growing plants in a closed space. It controls the light, airflow velocity, temperature, humidity, nutrients, and carbon dioxide concentration to make plants grow well. Wooree ETI has built a 1,700-pyeong(5,610㎡) one-stop system. It can process from plant cultivation to ingredient extraction, raw material production, and health functional food (finished product) production. Wooree ETI has been experimenting with five medicinal plants in Ansan, Gyeonggi Province since last September. The company’s specialty is the growth of Korean medicinal crops.
The Wooree ETI claims that it has strengths in the areas of light that are most influential on plant growth. The Wooree Lighting in the Wooree group has made lighting products since 1965, and Wooree ENL is manufacturing light emitting diode (LED) packages. It is the background of why the company emphasizes that its optical technology base is stronger than other companies. The company plans to utilize infrastructures such as existing IT technology and factory clean room.
Wooree ETI has set the goal of achieving sales of 50 billion won within three years in the bio-business. In the existing LGP and PCB businesses, the company aims to achieve 30 billion won in sales to raise 80 billion won in total sales. A company official said that sales last year were about 30 billion won and that it was recorded as a surplus. The company was in the red for three consecutive years from 2015 to 2017. On a consolidated basis, the company recorded the sales of 1.282 trillion won and the operating loss of 10.6 billion won last year.
Wooree ETI is headquartered in Ansan, Gyeonggi Province. It was listed on the KOSDAQ in 2005. Major customers include LG Electronics, LG Display, and China BOE. The change of company name and advancement of new business will be publicly notified on the 20th. It will be decided at the shareholders’ meeting on the 29th.