Global Sae-A said on the 15th that the cumulative results of its paper affiliates improved as of May this year.
Global Sae-A's paper affiliates—Tailim Paper, Tailim Packaging, Jeonju Paper—as well as Jeonju One Power, Jeonju Power, and Dongrim Logistics posted cumulative sales through May of 904 billion won, up about 7% from a year earlier. Operating profit came to 73 billion won, and EBITDA was 110 billion won, provisionally tallied as increases of more than 100% and 50%, respectively.
The improvement is analyzed as stemming from higher export volumes, sales price increases, production efficiency gains, and expense structure improvements.
Tailim Paper and Jeonju Paper reorganized their factory-by-factory production systems. Tailim Paper focused on producing high-strength linerboard and medium- to high-basis-weight products, while Jeonju Paper shifted its business structure to center on corrugating medium and liner and expanded the share of low-basis-weight and specialized products.
They also expanded personnel and technology exchanges among affiliates. By sharing Tailim Paper's production technology and Jeonju Paper's overseas sales capabilities, they said they enhanced production stability and market responsiveness.
They also achieved expense savings through joint purchasing of materials and supplies and integrated operation of logistics networks. By leveraging production hubs and logistics networks, they laid the groundwork to respond to cost volatility.
Tailim Paper and Tailim Packaging are also working on developing eco-friendly packaging materials. They are supplying corrugated boxes that reduce paper use while increasing strength, as well as cold-chain packaging to replace Styrofoam.
Global Sae-A projected that, based on synergy among affiliates, this year's annual operating profit in the paper business will reach 190 billion to 200 billion won, with EBITDA at 280 billion to 300 billion won. It expected annual sales of 2.2 trillion to 2.3 trillion won, an increase of more than 10% from last year.
A Global Sae-A official said, "With the recent spread of eco-friendly consumption, demand is increasing for recyclable paper-based packaging materials, and with the growth of the e-commerce industry, the corrugated linerboard and packaging market is expected to grow an average of 5% to 6% annually through 2030," adding, "The improvement in the performance of the group's paper affiliates is meaningful as it stems from establishing a foundation for structural growth through cooperation and innovation."