At the Saemangeum secondary battery specialized complex in Gunsan, North Jeolla Province, visited Friday, the production facilities of PKC (001340), which began operations last month, stood on a site of about 32,000 pyeong (roughly 105,800 square meters). Inside the plant, two workers were connecting piping to inject freshly produced phosphorus trichloride (PCl₃) into an ISO tank. Phosphorus trichloride is an essential material for producing lithium salt (LiPF₆), a raw material for secondary battery electrolytes. "The phosphorus trichloride we make is the first product produced in Korea, and it is superior to Chinese products in both purity and color," said Cho Seong-jae, head of the PKC plant.
Founded in 1954, PKC (formerly Baekgwang Industry) is accelerating its transformation into an advanced materials company. After changing its name early last year, the company is shifting its business focus from basic chemical materials such as caustic soda, chlorine (Cl₂), and hydrochloric acid to secondary battery and semiconductor materials. "As competitors in China and Southeast Asia increased, growth limits with existing products became clear," Cho explained. "A shift to a new industry was urgently needed."
Saemangeum Plant No. 1, which began operations in June this year, is the first stage. The main products produced at the plant are phosphorus trichloride and phosphorus pentachloride (PCl₅). Phosphorus pentachloride is also an essential material for lithium salt (LiPF₆). "It was the result of considering materials that could utilize chlorine, which we handle well," Cho said. "By producing everything ourselves from raw materials to high-value products, we have secured competitiveness in both quality and price."
The operation of Saemangeum Plant No. 1 is also significant in terms of localizing the supply chain. Phosphorus trichloride and phosphorus pentachloride are materials that have relied on China because there were no domestic producers. "These two materials are strategic materials requiring government approval for export and import," Cho said. "This production will contribute to localizing and stabilizing the supply chain."
Based on current facilities, production capacity is 20,000 tons of phosphorus trichloride and 9,000 tons of phosphorus pentachloride. As growth in the electric vehicle market, a downstream industry, has been slower than expected, the company installed facilities on only 17,000 pyeong out of the 32,000-pyeong site to control the pace. If demand recovers, it plans to proceed with second and third expansions. Currently in the client quality certification stage, full-scale production is expected from next year.
Semiconductor materials are another growth axis for PKC. Starting with high-purity chlorine in 2008, the company has supplied specialty gases for semiconductor processes to Samsung Electronics, SK hynix, and others. It is now carrying out an expansion to increase production capacity by 50% to meet client demand. It has also begun developing next-generation specialty gases for etching processes and precursors for deposition processes.
"Semiconductor materials take two years for quality testing alone, so once adopted, they are rarely changed," Cho said. "It is so difficult that it takes five years to prepare a single material, but we are developing them to secure a leading position in the supply chain." PKC aims to take over ownership of the Saemangeum Plant No. 2 site this August and build production facilities for high-purity chlorine, next-generation specialty gases, and precursors by 2030.
PKC posted consolidated revenue of 272.1 billion won and operating profit of 12.2 billion won last year. Of that, revenue from specialty gases for semiconductor processes was 37 billion won, with 70% of total revenue still coming from basic chemical materials. The company plans to grow semiconductor specialty gas revenue to 100 billion won and secondary battery revenue to 200 billion won by 2030, raising the share of advanced materials to more than half. "The pace of recovery in the secondary battery industry is a variable, but our business is diversified across basic chemical and semiconductor materials," Cho said. "Growth will accelerate from 2028, when recovery is expected."
