UID Acquires Automotive Advanced Materials Company "TS Tech"... Accelerates Entry into Automotive Component Market

KOSDAQ-listed company UID is accelerating its entry into the automotive high-performance composite materials market by acquiring TS Tech, a specialized automotive advanced materials company. The company aims to diversify its business portfolio by adding automotive materials to its existing display business and to secure a foundation for mid- to long-term growth.

UID (CEO Park Jongsu) announced on July 1 that it will acquire a 51% stake in TS Tech, a polypropylene (PP) composite material company for automotive interiors, thereby securing management control.

On this day, the company held a board of directors meeting at its headquarters in Cheongju, Chungcheongbuk-do, and approved the agenda to participate in a third-party allocation paid-in capital increase by TS Tech. The investment amounts to approximately 2 billion won, and the acquisition of new shares and payment process are expected to be completed within July.

Through this decision, UID will bring TS Tech, which possesses technological capabilities in the automotive materials sector, into its group companies and secure new growth engines targeting the electric vehicle and automotive component markets.

TS Tech is a company with competitiveness in the field of PP composite materials for automotive interiors, and has established an original equipment manufacturer (OEM) supply chain with major domestic oil refining and chemical companies.

Currently, TS Tech stably generates annual sales of over 10 billion won, and based on its own business plan, it aims to achieve sales of 14.16 billion won in 2026 and 17.76 billion won in 2027.

UID expects that the performance of TS Tech, reflected in its consolidated financial statements through this acquisition, will lead to both business expansion and improved profitability.

A UID official stated, "TS Tech is a leading automotive materials company with a stable sales foundation, and this acquisition has enabled us to secure a new axis of growth. By reflecting its consolidated performance, we expect to simultaneously pursue sales growth and strengthened profitability."

UID also plans to promote technological convergence between its existing and new businesses. The company possesses accumulated technological expertise and production capabilities in ITO coating and display slimming for IT devices such as smartphones and tablet PCs.

By combining this with high-performance PP composite material technology for automotive interiors, UID plans to strengthen its strategy for the eco-friendly automotive component market.

Recently, as improving driving range by reducing vehicle weight has become a major task in the electric vehicle market, there is growing interest in high-performance composite materials that can replace metal components. UID intends to leverage TS Tech's eco-friendly, ultra-lightweight PP technology to secure a competitive edge in the automotive materials sector.

A UID official added, "By securing a 51% stake in the excellent unlisted company TS Tech, we have established a new growth engine in the field of high-performance automotive component materials. By combining our 30 years of accumulated thin-film coating technology with TS Tech's advanced PP composite material technology, we will aggressively target the next-generation eco-friendly automotive component market and enhance our corporate value."

In the financial investment industry, there are expectations that this acquisition could serve as an opportunity for a corporate value re-evaluation of UID. Some analysts believe that, once the acquisition is complete and the automotive materials business performance is reflected in the consolidated financial statements, a new growth momentum could emerge alongside the existing business.

This content was produced with the assistance of AI translation services.