South Korean battery equipment maker Mplus said Thursday that it was expecting double digit growth in 2021.
Mplus CEO Kim Jong-sung said the company strengthened its sales staff to win orders from new customers in Europe and was expecting noticeable results this year.
Both sales and operating margin rate will improve this year, the CEO said.
Last year, Mplus recorded 158.5 billion won in sales and 10 billion won in operating income.
If the company hits its target, its sales will be around 200 billion won, which will make it the largest battery equipment maker in South Korea.
Mplus’ main customer so far has been SK Innovation. The trade secret dispute between SK Innovation and LG Energy Solution is its biggest potentially liability.
SK Innovation almost placed no orders for equipment since the second half of 2020. The company is expected start placing orders later this year for its third factory in Hungary.
Mplus has also focused on supplying equipment for the production of pouch-type batteries so far. But it recently finished development of equipment for prismatic batteries. It will be able to supply notching and stacking equipment going forward. In Europe, Northvolt and Saft are spending on manufacturing prismatic batteries.
Notching and stacking equipment account for over half the equipment used in prismatic battery assembly, Kim said. The increase in battery related startups and more automobile companies moving make their own batteries have expanded Mplus’ sales reach, he added.
Providing equipment for both pouch-type and prismatic batteries will allow Mplus to reduce its reliance on Sk Innovation. It may win orders from prismatic battery companies such as Svolt, which recently unveiled its own pouch-type battery.