Korea Zinc Enhances Competitiveness with Onsan Smelter Rationalization Project

Onsan Smelter Rationalization Boosts Efficiency and Profitability
Korea Zinc has completed its comprehensive Onsan Smelter Rationalization Project, designed to optimize the efficiency and competitiveness of its Onsan smelting operations. The project, executed throughout 2024, has delivered significant improvements in operational processes, energy use, and cost efficiency. As a result, Korea Zinc anticipates exceeding its original operating profit targets for the year, further solidifying its position in the non-ferrous metals sector despite global economic challenges.

Operational Improvements Drive Key Gains in Production and Cost Reduction
The primary focus of the project was to streamline operational processes, improve energy efficiency, and enhance cost competitiveness. As part of the initiative, Korea Zinc implemented a series of targeted upgrades. Notable improvements include an increase in annual lead production, which rose from 420,000 tons to 450,000 tons. Additionally, logistics and production costs were significantly reduced, with logistics expenses dropping to KRW 3 billion, one-third of the previous year’s costs. These operational optimizations are expected to directly impact profitability, contributing to higher-than-forecast operating margins.

Leadership and Strategic Collaboration Fuel Project’s Success
The successful execution of the project is attributed to the hands-on leadership of Chief Smelting Officer President Tae-Woong Jung. Jung personally oversaw the implementation of the rationalization efforts, splitting his time between the Onsan smelter and Korea Zinc’s headquarters in Seoul. His leadership style fostered strong collaboration between senior executives, operational teams, and workers, ensuring that the ambitious goals of the project were met.

Under Jung’s guidance, the company established 23 key personnel to manage process optimization, formed task forces for cross-functional coordination, and incentivized top-performing teams. These efforts were designed to tackle global price fluctuations and mitigate risks associated with raw material purchases and product sales, thus enhancing overall cost management.

Labor-Management Cooperation a Key Component of Long-Term Success
The rationalization project was also supported by Korea Zinc’s long-standing labor-management cooperation. The company has maintained a remarkable 37 consecutive years without labor disputes, which has fostered a culture of trust and collaboration. This strong working relationship played a pivotal role in driving the project’s success, allowing the company to maintain high levels of productivity and morale even amid external market pressures.

Future Outlook: Adapting to Market Challenges and Ensuring Competitiveness
Despite facing global uncertainties, including the ongoing conflict in Ukraine, rising energy costs, and fluctuating treatment charges (TC), Korea Zinc remains optimistic about its future. The company has strategically positioned itself to adapt to these challenges by enhancing its internal processes and supply chains. Looking ahead, Korea Zinc remains committed to maintaining its competitiveness in the non-ferrous metals market and continuing to innovate its smelting operations to meet global demand.

The successful execution of the Onsan Smelter Rationalization Project underscores Korea Zinc’s ability to adapt to changing market conditions, and its focus on continuous improvement and operational efficiency positions it to remain a leading player in the global non-ferrous metals industry.