As the world races towards carbon neutrality, the aluminum recycling market is heating up as a key pillar of the eco-friendly industry. Aluminum recycling can reduce energy usage by up to 95% compared to primary metal production, making it an essential element of ESG management. The industry anticipates that the global aluminum scrap market will add an annual processing capacity of 22 million tons by 2026, with the market size nearly doubling to USD 11.46 billion (approximately KRW 16 trillion) by 2030.

At the center of this market expansion is a company that has quietly grown. That company is Shinwol Co., Ltd., headquartered in Jecheon, Chungbuk. Starting as a small firm over 20 years ago, Shinwol has grown to achieve a revenue scale exceeding KRW 20 billion, becoming a notable success story in the domestic aluminum recycling industry.

"The era when aluminum is increasingly in the spotlight is coming," said CEO Shin Sung-hyun, a statement he has been making for over a decade. At the time, copper was the primary material in demand, but he foresaw the potential of aluminum ahead of others. He was convinced that aluminum, which is relatively inexpensive yet of excellent quality, would experience explosive growth as it met the trend of automotive lightweighting.

His prediction was accurate. As automakers intensified efforts to reduce vehicle weight, the demand for aluminum surged, and Shinwol accurately captured this trend. Currently, 70-80% of its total sales come from first-tier suppliers to Hyundai Motor and Kia. It has firmly established itself in the production of automotive parts and aluminum finished products.

Eco-friendly Process Captures 'Three Birds with One Stone'

Shinwol's competitiveness lies not in mere scale expansion but in its technological prowess, recognized in the industry for its advanced aluminum processes. Recently, the focus has shifted towards eco-friendliness. Moving away from the traditional method of directly melting aluminum in furnaces, the company plans to introduce a new eco-friendly process that maximizes scrap refining and impurity removal.

This process innovation results in a triple benefit: environmental protection, product quality improvement, and cost reduction.

Shinwol's growth ambition is vividly evident in its investment activities. The company is expanding its production base by acquiring land around its headquarters and making bold decisions in equipment investment for eco-friendly processes.

Although the recent U.S. steel and aluminum mutual tariff measures require a temporary pause, the perspective of seeing it as an opportunity prevails. The government is actively supporting the development of recycling and recycling technologies. Considering that the domestic aluminum can collection rate is 96% but the recycling rate is only 37%, advancing domestic recycling technology is an urgent task.

Shinwol is swiftly responding to these market changes, nurturing sustainable growth engines. Accurately understanding the requirements of its suppliers and maintaining the highest quality as a management philosophy helps sustain long-term business relationships, which is a significant advantage for Shinwol. This is why Shinwol's steps in the aluminum recycling field, a key industry in the carbon-neutral era, are drawing more attention.

Meeting at the headquarters in Jecheon, Chungbuk, CEO Shin Sung-hyun (pictured) recalled, “10-15 years ago, copper usage was extremely high. But I turned my attention to aluminum early on.” He continued, “I instinctively felt that aluminum, which is cheaper yet of superior quality compared to copper, would become a springboard for resurgence when it met the trend of automotive lightweighting.”

His prediction was spot on. By accurately reading the movements of automakers focused on vehicle lightweighting, the company now generates 70-80% of its total sales through first-tier vendors of global automakers.

Of course, it wasn't all smooth sailing. CEO Shin candidly shared, “In May 2014, I established Shinil Metal and operated an electric melting plant, but the domestic and international economy worsened, causing quite a struggle.” He added, “However, with quick judgment, I decided to focus on the business prospects and profitability of the most promising areas.”

Currently, Shinwol is most focused on eco-friendly process innovation. CEO Shin confidently stated, “In the past, we roughly melted aluminum in furnaces, but now we have switched to an eco-friendly method that thoroughly refines scrap and filters out impurities from the shredding stage.” He emphasized, “We will continue to invest in eco-friendly facilities. Reinvesting in technology is a duty of an entrepreneur.”

In fact, Shinwol holds certifications in environmental management systems, as well as safety and health, and quality management, participating in the social responsibilities that a company should fulfill.

Plans for the electric vehicle era are also being concretized. “As aluminum demand increases, we are preparing for that change in advance. The goal is to become a company that consistently grows by accurately understanding what our suppliers want.” CEO Shin's eyes still held the passion from 20 years ago when he first founded the company.

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