On the 24th, at the Manho Rope & Wire plant in Seongsan-dong, Changwon, South Gyeongsang Province. In this giant "weaving factory of iron," thick bundles of special steel wire, made by repeatedly twisting dozens of strands of thin wire only a few millimeters in diameter along rollers, were coiled into massive rings. The products are exported not only domestically but also to Japan. To meet delivery deadlines, all nine production buildings on the more than 30,000-pyeong site were operating at full speed.
Manho Rope & Wire receives raw materials from POSCO and makes industrial steel and fiber products used in buildings, bridges, cranes, elevators, and special springs. Starting in 2028, the plant is slated to produce nuclear-grade high-tensile wire needed to build the Shin-Hanul Units 5 and 6 reactors that Doosan Enerbility is constructing in Uljin.
Executive Director Heo Ki-hyeong, the plant manager overseeing company production, said, "We plan to supply PC strand products made by bundling 51 PC tendons, which are much stronger and more flexible than ordinary rebar," adding, "We have been recognized for both our technology and delivery capability after producing nuclear-grade PC strands four times, including for the Yeonggwang nuclear plant, and supplying for these two units will generate about 20 billion won in new sales."
After three years mired in deep losses, Manho Rope & Wire is expected to return to profit this year. As the founding family stepped aside and a new owner took over, the company laid the groundwork for a turnaround through cost innovation and a restructuring of its business portfolio.
In particular, along with normalizing management, Manho Rope & Wire plans to pursue new businesses in ultra-precision machining for auto parts and defense, as well as robot controllers and actuators, through aggressive mergers and acquisitions (M&A).
New CEO Ahn Byung-doo, who took the helm after acquiring control last year, said, "While turning a profit in our core businesses such as special steel wire and wire rope, we will add new businesses in auto parts, defense, and robots to lift the company's value," adding, "We will leap beyond a materials company to become an advanced parts and robotics company and will also pursue an active shareholder-return policy."
◇Manho Rope & Wire emerges from a long tunnel… turns profitable this year
Manho Rope & Wire, listed on the main board, posted losses for the past three years. Dividends were suspended and the stock fell. A dispute between the Oner family and the second-largest shareholder at times sent the share price surging, but without earnings support, the stock merely swung with the headlines about the dispute.
But the sale of the company by the Oner family created a turning point. The person set to lead Manho Rope & Wire is CEO Ahn Byung-doo, who listed Shinsung ST on KOSDAQ and executed a successful exit. Over two months before the acquisition, he closely analyzed the company's financial structure and business competitiveness and concluded that "there is ample growth potential."
The first thing Ahn did after taking command was to improve the company's fundamentals. He boldly eliminated unnecessary expenses that could be cut immediately. By adjusting production during peak hours when electricity rates are high, the company reduced energy costs, and by restructuring the existing management team, it cut annual labor costs by several billion won. In addition, through a so-called big bath, writing off old equipment all at once, the company shed financial burdens and secured a base for a fresh start.
Ahn said, "At the time of acquisition, Manho Rope & Wire was like a 'wet towel'—high potential but low efficiency," adding, "As we wrung it out and streamlined the structure, profitability has improved quickly. A clear return to profit is possible this year."
◇Next after strengthening fundamentals is a 'jump'… new businesses in auto parts, defense, and robots
Having boosted its basic strength through structural improvements, Manho Rope & Wire is also preparing a 'jump' for top-line growth. CEO Ahn Byung-doo said, "We are pursuing M&A to enter ultra-precision machining such as auto parts, defense, and special batteries, as well as the robot actuator business."
First, auto parts maker Samjin Mobility will become a subsidiary of Manho Rope & Wire. Samjin Mobility, which generates annual net profit of 2 billion to 3 billion won, produces core components for constant-velocity joints for automobiles and parts such as electric vehicle battery pack frames, and supplies products to global automakers including General Motors (GM) in the United States and Volkswagen.
Manho Rope & Wire is also entering the ultra-precision machining field for shells and fuzes (detonators), while pursuing an M&A deal for a specialist that produces actuators used in robot joints.
CEO Ahn Byung-doo said, "We are in the final stage of acquiring a company that specializes in producing wire harness cables, controllers, and electrical components used in robot bodies," adding, "The company is expected to post sales of about 40 billion won this year, rising to around 100 billion won in 2028."
As stable revenue flows from existing businesses while new portfolios in auto parts, defense, and robots take shape, Manho Rope & Wire plans to announce a new company name and CI (corporate identity) soon.
An aggressive shareholder-return policy is also planned. Following a stock split to increase the number of shares in circulation and an asset revaluation, the company plans to introduce the cancellation of 15% of treasury shares and a new interim dividend. The company said it will pay dividends equal to 3% of market capitalization, or about 6 billion won.