PANASIA investing aggressively in R&D and production infrastructure

Production capacity worth up to 100 million won, following completion of 2^nd Factory
Extension of smart factory line at headquarters
“We will become a beneficiary company of ‘Green New Deal’ through investing in hydrogen reformer”

View of the PANASIA headquarters based in Mieum Industrial Complex, Gangseo-gu, Busan, Republic of Korea

Busan-based company PANASIA has started to invest aggressively in production equipment. In a move apparently meant to cope effectively with the growing demand for scrubbers, the mainstay of PANASIA’s product line, and to improve productivity and quality, the company seems intent on creating a portfolio that reflects its transition from a marine equipment manufacturer to an eco-friendly system expert.

Having recently completed the extension at 2^nd Factory, PANASIA announced on the 10^th that it now has a production capacity worth up to 100 million won per year.

At 2^nd Factory, scrubbers are the mainstay of its operations. A rep confided that the factory is already filled with components for scrubbers. Scrubbers are used to reduce SOx emissions from ship engines and boilers. 

Scrubber awaiting delivery at 2^nd Factory (Source: PANASIA)

Scrubbers, in particular, have seen exponential growth in demand as the International Maritime Organization (IMO) began to implement tighter regulations for marine fuels early this year. Forecasts indicate that PANASIA’s aggressive investing will produce a result in a short period of time. The IMO’s regulation lowers the sulfur content in marine fuels from 3.5% to 0.5% for all types of ships around the world.

According to Clarksons, a maritime research agency, around 3,900 vessels are currently equipped with scrubber installations, with more installations to be completed.
 

PANASIA has reportedly benefited the most from these changes in regulations. Since 2018, PANASIA has taken steps to enter the scrubber market by leveraging its expertise in tank level gauging systems. In a mere two years, the company has gained the 4th largest share of the global market.

Last year, the company saw its sales increase by 5.7 times and operating income by 514 times, on a year-over-year basis.

At the headquarters (1^st Factory), PANASIA is adding a new line equipped with a smart factory system. By the second half of 2020, the company is planning to complete an automated production line, which combines a tank level gauging system with Internet-of-Things (IoT) technology.

Through these deployments, the company plans to build a system consisting of sensors, IoT devices, and kiosks installed on each process, which enables the real-time monitoring of on-site data, such as output, quality, and operator data. The company believes such a system will maximize efficiency across the entire process.

Smart factory control room at PANASIA (Source: PANASIA)

By extending and updating its smart system line, PANASIA expects to see an exponential growth in production, a reduction in lead time, and lower defect rates, which will ultimately cut the cost of manufacturing by 5 to 10%.

Using the smart factory system, PANASIA is already manufacturing UV lamps, one of the key components that sterilizes the ballast water in the ballast water treatment system. Following the deployment of the smart factory system, PANASIA has experienced remarkable results, including a 375% increase in daily UV lamp production, an 85% drop in the defect rate, and a 30% reduction in manufacturing costs.

A rep revealed, “We are looking beyond what we have achieved in the marine industry and are setting our sights on the hydrogen market, the key to the Green New Deal policy, as a future growth engine. Following the completion of 2^nd Factory, we are expanding our infrastructure for hydrogen reformer, which is still in its development phase, in addition to our existing production line. Through this, we intend to enter the renewable energy market and diversify our portfolio.”