On the 24th, at the Manho Rope & Wire plant in Seongsan-dong, Changwon, South Gyeongsang. In this massive "iron weaving plant," 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 giant rings. The products are exported not only domestically but also to Japan. To meet delivery deadlines, all nine production buildings on a site of more than 30,000 pyeong were running 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 expected to produce nuclear-grade high-tensile wire needed when Doosan Enerbility builds the Shin Hanul Units 5 and 6 reactors in Uljin.
Executive Director Heo Gi-hyeong, the plant manager overseeing company production, said, "We plan to supply PC strand products made by bundling 51 PC wires, which are much stronger and more flexible than ordinary rebar," adding, "We previously produced nuclear PC strands four times, including for the Yeonggwang plant, and earned recognition for both technology and on-time delivery. Supplying this two-unit order will generate about 20 billion won in new revenue."
Manho Rope & Wire, which had been mired in losses for the past three years, is expected to return to profit this year. After the founding family stepped down and the company welcomed a new owner, it laid the groundwork for a turnaround through cost innovation and restructuring of its business portfolio.
In particular, Manho Rope & Wire plans to push 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) alongside normalizing management.
New CEO Ahn Byung-doo, who became CEO 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 components and robot company and pursue active shareholder return policies."
◇Manho Rope & Wire emerges from a long tunnel… turns profitable this year
Manho Rope & Wire, listed on the main bourse, posted losses for the past three years. Dividends were suspended and the stock price fell. A dispute between the owner family and the No. 2 shareholder at times sent the stock surging, but without earnings support, the price only swung with news of the dispute.
But the turning point came when the owner family sold the company. The person who took the helm of Manho Rope & Wire is CEO Ahn Byung-doo, who listed Shinsung ST on KOSDAQ and exited successfully. For 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 removed unnecessary expenses that could be cut immediately. By adjusting production during peak hours with high electricity rates, the company reduced energy costs, and by restructuring the existing management, it cut tens of billions of won in annual labor costs. In addition, through a so-called "big bath," in which old facilities were written off all at once, the company shed financial burdens and secured a foundation for a fresh leap.
Ahn said, "At the time of acquisition, Manho Rope & Wire had great potential but was like a 'wet towel' with poor efficiency," adding, "As we wrung it out and streamlined the structure, profitability is improving quickly. A clear return to profit is possible this year."
◇After improving fundamentals comes a 'jump'… new businesses in auto parts, defense, and robots
Having strengthened its basic fitness through restructuring, Manho Rope & Wire is also preparing a "jump" for top-line growth. CEO Ahn Byung-doo said, "We are proceeding with M&A to enter ultra-precision machining businesses such as auto parts, defense, and special batteries, as well as robot actuators."
First, the auto parts company Samjin Mobility will become a subsidiary of Manho Rope & Wire. Samjin Mobility, which posts annual net profit of 2 billion to 3 billion won, produces core parts for constant-velocity joints for automobiles and components such as frames for electric vehicle battery packs, and supplies products to global automakers including General Motors (GM) and Volkswagen.
Manho Rope & Wire is also entering the ultra-precision machining field for shells and fuzes (detonators), while pursuing an M&A 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 for robot bodies," adding, "The company is expected to post 40 billion won in revenue this year and grow to 100 billion won in revenue in 2028."
With stable revenue from existing businesses and a new portfolio in auto parts, defense, and robots, Manho Rope & Wire plans to soon announce a new corporate name and CI (corporate identity).
It also plans active shareholder returns. Following a stock split to increase the number of shares in circulation and an asset revaluation, it plans to cancel 15% of treasury shares and introduce an interim dividend. The company said it will pay dividends equal to 3% of its market capitalization, about 6 billion won.