KBI Dongyang Steel Pipe's shares soared after the company announced it will supply steel pipes to SpaceX's rocket launch facilities. This news has reportedly boosted investor sentiment as the company is now recognized for supplying products to the U.S. space industry.
According to the Korea Exchange, as of 1:23 PM on October 19, KBI Dongyang Steel Pipe's stock rose by 403 won (29.96%) to 1,748 won. The stock price surged early in the trading session, reaching the upper limit allowed.
KBI Dongyang Steel Pipe stated that it is supplying 950 tons of high-strength steel pipes to SpaceX's rocket launch facilities in Florida and Texas. The company shipped 640 tons in April and plans to deliver an additional 310 tons this month.
The supplied steel pipes will be used in a water deluge system designed to mitigate the high heat and shock generated during rocket launches. Given their application in protecting launch pads and surrounding facilities, these pipes must meet high durability and quality standards.
The products are manufactured at KBI Dongyang Steel Pipe's factories in Cheonan and Chungju. The company met supply standards following a factory inspection for production process verification in March, and it aims to expand its order opportunities in the U.S. space industry through this delivery.
CEO Lee Gak-woo stated, "We have demonstrated our technological capabilities through the SpaceX project supply, and we plan to expand our business scope in the U.S. market based on this foundation."
* This article has been translated by AI.
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