[Alpha Biz= Reporter Kim Jisun] Korea Zinc has decided to end the "joint purchase and joint operation of raw materials" that it has been doing with Youngpoong.
Korea Zinc released a statement on the 9th and stated, "Korea Zinc and Youngpoong have signed a joint contract in the process of purchasing raw materials and selling products for major items such as zinc, but we plan to terminate this upon the expiration of the contract."
As a result, Korea Zinc plans to carry out its business through individual negotiations with each client regarding the purchase of raw materials and product sales in the future.
Korea Zinc explained that it will carry out the measures to improve its performance and reduce costs.
In particular, Korea Zinc cited △ an increase in various incidental costs due to joint purchase of raw materials at high prices at a time when it is difficult to secure supply of raw materials for both companies, △ differentiated sales and sales strategies depending on products △ persistent complaints from customers due to differences in quality resulting from joint operations and sales, and the risk of damages in the event of disruptions due to a decrease in supply due to three-way joint contracts with clients and Youngpoong.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
