PANASIA is building Plant #2 in Gangseo-gu, Busan 

Signed an MOU with Busan City for investment in expansion   

Signed an MOU with Busan City for investment in expansion   

PANASIA, a shipbuilding and marine expert whose technology has received international recognition, is set to build its second factory in Busan. 

On the 4th, Busan and the Innopolis Busan Headquarters announced that the city signed a MOU with PANASIA for investment in expansion on the 30th last month.

Under the MOU, by 2020 PANASIA will spend KRW 20 billion building Plant #2 covering an area of 15,500㎡ on a site of 13,000㎡ in International Industrial Logistics City, Gangseo-gu.

PANASIA’s upcoming expansion project is a response to sharply growing demand for de-SOx scrubber systems, the company’s flagship product, following the IMO’s tightening of its environmental regulations.

Last month alone, PANASIA got 316 orders for scrubber systems, 91 of which have been shipped until now. The company is expected to report KRW 500 billion in revenue for the orders that have been shipped. Also, the company received 1,464 orders for its other flagship product, ballast water treatment system (BWTS). In particular, all ships around the world are required to have ballast water treatment systems on board by September 2024, so the sharp growth in demand will continue. Last year, PANASIA reported KRW 64.7 billion in sales, and this year, the company is expected to earn 575 billion, its largest sales revenue yet since its foundation.

Founded in 1989, PANASIA is a small company specializing in the manufacture of ballast water treatment systems and offshore and marine exhaust gas treatment systems. 

Recently, the company has become a prominent manufacturer of eco-friendly systems that clean sulfur oxides (SOx) and nitric oxides (NOx), which are the leading causes of air pollution. Now, it is competing with global industry leaders.

Its ballast water treatment system, in particular, has an 18% global market share, maintaining its leading position.

PANASIA is also a three-time recipient of the IR52 Jang Young Sil Award, and a high-tech giant that owns 268 patents. This year, the company is expected to win the 100-million-dollar export tower of the year for its international operations in Europe, Japan, and China. 

The International Industrial Logistics Complex in Gangseo-gu, Busan, where PANASIA’s second plant will be situated, is close to Busan New Port, the world’s sixth largest container port, and Gimhae International Airport. It also has a well-connected logistics network, making it a suitable place for international sales and export activities. By August 2020, when all investments will have been made, PANASIA is expected to be able to provide a steady supply of products, ensure better quality, and create jobs for 55 people.

Busan has 70% of all marine equipment suppliers across the country. It also provides a rich tech talent pool and a well-developed industry-academic-research network.

The city is home to the top five in ballast water management systems, namely, Techcross, Panasia, Hyundai Global Services, S&SYS, and Halla IMS.

A rep for Busan confided, “The city will take advantage of its location as Korea’s largest marine equipment cluster and focus on attracting shipbuilders and marine companies. Thus, it will expand its industrial ecosystem and elevate Busan’s status as a Northeast Asian marine capital.”

bscity@sedaily.com