SeAH Besteel Corporation Business Report up until FY ended Dec. 2013

Business Highlights

Financial Overview

(in millions of won)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of
Sales 2,112,649 2,194,080 (3.7%) <FY2013 Sales by division and product (Ratio)>
[Special steel business]
-Special steel
1,987.1 billion won (94.1%)

-Forged auto components
(Crankshafts, axle shafts, CV joints, etc.)
19.9 billion won (0.9%)

<Auto parts business>
-Auto parts (Axle assemblies, etc.)
35.7 billion won (1.7%)
Operating income 143,852 171,773 (16.3%) -
Net income 104,009 119,182 (12.7%) -

Transfer of headquarters

-In 2012, the Company transferred its headquarters from Gunsan, Jeollabuk-do to Seoul Special City.

Business Plan

-The Company aims to achieve yearly sales of 4 trillion won in 2015.


R&D Structure

-Number of engineers at the technical center : 49 (as of Dec. 31, 2013)

<Special steel products division>
-In 1987, the Company established a technical center to conduct research on special steel. Research activities are carried out in three operating segments: the Research Management Division; Research and Development Division; and Production Engineering Division.

-In 2006, the Company set up a R&D center. This facility consists of a Testing and Analysis Center to analyze materials, and a Reliability Evaluation Center to assess the reliability of products.

<Auto parts division>
-The Company formed an automotive technology development team in 1986, when it launched production of car axles. This development team has two divisions; the R&D Division, and the Production Engineering Division.

-The Company announced in October 2012 that it has completed a new testing facility within the premises of its existing R&D center in Korea. The new building will be equipped with various advanced devices. It has a spectroanalysis room, a wet screening room, a testing room and an ultrasonic C-Scan system on the first floor, and a scanning electron microscopy (SEM) room and a heat treatment testing room with a Gleeble thermomechanical simulator on the second floor. (From a press release, December 1, 2012)

R&D Expenditure

(in millions of won)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Amount 20,523 23,498 15,492
% of Sales 1.0% 1.1% 0.6%

Recent Developments

Development projects Development period
High-strength tempered steel for rack bars 36 months
Steel for crankshafts used in Nissan's vehicles 12 months
Non-tempered steel to manufacture high-strength crankshafts 12 months
Mass-production of high-performance, non-tempered steel for Hyundai Motor 6 months
SCR423PRH for high-temperature, vacuum carburizing 36 months
Steel (SCM420HB) for high-strength transmission shafts 24 months
Non-tempered steel (II) for crankshafts used in Nissan's vehicles 12 months
Steel (SDP20) for plastic molds 12 months
High-stress spring steel 6 months
Nickel- and molybdenum-free steel products 6 months
Carburized steel for small gears 10 months
High-strength steel for transmission shafts 9 months
Non-tempered steel for crankshafts
(Used in the M1G engines made by Renault Samsung)
6 months
Steel for connecting rods
(Used in GM Korea's engines compliant with the Euro 5 emissions standards)
11 months
Vacuum/high-temperature carburized steel (this technology is used on Hyundai hybrid vehicles) 11 months
Low-temperature vacuum carburized steel (SCR422HLVC) for Hyundai Motor 12 months
Steel materials (SCR420H) for transmissions for Jatco and Honda 12 months