WCP Cuts Q2 Operating Loss by 40%... "Q3 to Mark Performance Turnaround"

DoubleWCP Chungju Plant Exterior. Photo by DoubleWCP

WCP, a battery separator company, announced on August 7 that its consolidated sales for the second quarter were KRW 36.2 billion, with an operating loss of KRW 15.5 billion. Compared to the same period last year, sales decreased by 5.1%, while the operating loss narrowed by 40.4%. Net profit turned positive, reaching KRW 900 million.

According to the company, second-quarter sales were affected by the supply gap in Europe for strategic customers in the electric vehicle segment, while negotiations for North American lithium iron phosphate (LFP) supplies and sales to domestic energy storage system (ESS) customers were ongoing. WCP stated that supply of small battery products to its main customer proceeded as expected.

Despite the decline in sales, the company was able to reduce its losses and lay the groundwork for improved profitability thanks to company-wide cost reduction efforts and improved utilization rates.

WCP highlighted the third quarter as a turning point for its performance rebound. A company representative said, “In the ESS segment, we anticipate increased sales as LFP project shipments to domestic customers begin in earnest. In the electric vehicle segment, we will flexibly manage supplies to strategic customers in Europe, and for the small battery business, we will continue stable supplies of existing cylindrical products.”

With sales recovery expected to drive up utilization rates, the company also forecasts improved profitability. WCP stated that it is targeting a turnaround to positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) through enhanced production efficiency and alleviation of fixed-cost burdens. In the fourth quarter, the company expects revenue growth to accelerate further, as domestic ESS customers ramp up supplies to North America.

A WCP spokesperson further explained, “From 2026 to 2028, we plan to fundamentally restructure our business, shifting from a single-customer focus to a system with strong domestic and global customers, and from offering a single product to building a diverse portfolio of premium products to enhance our market responsiveness.” The company also announced plans to prepare its Hungary production line to respond to growing overseas demand.

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