W-scope Chungju Plant

WCP produces separators, one of the four core materials in lithium-ion batteries, with wet-process separators and ceramic-coated separators (CCS) for electric-vehicle batteries as its main products.

For most of its history as a listed company, Samsung SDI has been its core customer, and the vast majority of revenue has been concentrated with that single client.

In 2023 the company signed a long-term supply agreement with Samsung SDI covering roughly 4.0 billion square meters of separator through 2027, securing a stable demand base.

More recently, supply has expanded to SK On's LFP ESS battery line in Georgia, United States, and to LG Energy Solution's cylindrical battery lines, reflecting a broadening customer base.

Sample and cell testing for cylindrical 4680-type battery separators is reportedly under way with a major North American EV maker as well.

Production is based at two sites, the Chungju plant in Korea and a Hungary plant; the Hungary facility is WCP's first overseas production base and is undergoing trial operation ahead of a planned 2026 mass-production start.

Combined domestic and overseas capacity is planned to expand to roughly 2.3 billion square meters. On the competitive front, WCP is credited with cost and productivity advantages from its 5.5-meter wide-width film technology, a world first, and its dual-coating process.

Domestic rival SK IE Technology has suspended production lines amid Chinese oversupply and slowing EV demand, while Japan's Asahi Kasei and Toray have scaled back or exited the business, leaving WCP relatively more prominent within the non-China separator supply chain.

WCP's annual results were profitable in 2022 and 2023 before swinging to large losses starting in 2024.

In 2022 revenue was KRW 257.4 billion with operating profit of KRW 58.0 billion (operating margin 22.5%), followed by 2023 revenue of KRW 305.0 billion and operating profit of KRW 46.4 billion (operating margin 15.2%), profitable in both years.

In 2024, however, despite revenue rising to KRW 322.1 billion, the company swung to an operating loss of KRW 70.9 billion (operating margin -22.0%), and in 2025 revenue collapsed to KRW 110.8 billion while the operating loss widened to KRW 127.6 billion (operating margin -115.2%).

The 2025 net loss attributable to owners of KRW 162.1 billion eroded a substantial portion of shareholders' equity of KRW 894.5 billion.

On a quarterly basis, revenue fell from KRW 38.2 billion with an operating loss of KRW 26.0 billion in the second quarter of 2025, to KRW 29.1 billion and a KRW 31.0 billion loss in the third quarter, and KRW 27.2 billion and a KRW 40.2 billion loss in the fourth quarter, a period in which losses widened even as revenue shrank.

Into 2026, first-quarter revenue rebounded to KRW 42.9 billion with the operating loss narrowing to KRW 20.5 billion, and second-quarter revenue was KRW 36.2 billion with an operating loss of KRW 15.5 billion, continuing the trend of narrowing losses.

Notably, net income attributable to owners in the second quarter of 2026 turned slightly positive at KRW 0.8 billion, ending five consecutive quarters of net losses, even though operating profit itself remained negative, suggesting a non-operating factor whose details are not yet confirmed in disclosed materials.

The debt ratio climbed from 15.4% in 2022 to 35.8% in 2023, 86.9% in 2024, and 117.5% in 2025, while operating cash flow swung from a net inflow of KRW 134.3 billion in 2023 to outflows of KRW 15.8 billion in 2024 and KRW 27.5 billion in 2025, a second straight year of negative operating cash flow that points to rising funding pressure.

The global EV market is undergoing demand realignment shaped by regional policy shifts, with North America in particular showing a marked slowdown following the reduction of tax credits, according to industry analysis.

By contrast, the energy storage system (ESS) market has shown relatively resilient growth and is emerging as a new demand driver for separator makers.

Domestic rival SK IE Technology has decided to suspend commercial operation of its entire production line through the end of November 2026 due to aging facilities and deteriorating profitability, which will sharply cut its capacity.

Japan's Asahi Kasei and Toray have likewise scaled back or exited the separator business amid group-wide restructuring. This retreat by non-China competitors is cited as a factor elevating WCP's relative standing within the supply chain, since it has largely maintained its operations.

Even so, Chinese producers still retain substantial capacity, and Korea's major battery makers, including Samsung SDI and LG Energy Solution, have a history of signing long-term supply agreements with Chinese separator suppliers such as Senior Technology Material, meaning price competition remains a live issue.

Under the U.S. Inflation Reduction Act framework, separators classified as a core battery component have also created a more favorable environment for producers with non-China production bases.

The company is reported to have guided for 2026 annual separator shipment volume to grow more than 100% year on year.

Quarterly break-even shipment volume is estimated at roughly 110-120 million square meters, and several brokerage reports point to a possible swing to operating profit around the fourth quarter of 2026 as LFP ESS volume is fully reflected.

Samsung SDI plans to ramp up mass production on its ESS-focused LFP battery line at the StarPlus Energy joint venture in Kokomo, Indiana starting in October, a line reportedly set to use WCP separators.

A supply project for LFP ESS batteries destined for the U.S. market through SK On is also under way, with initial volume of about 1 GWh expected to expand to roughly 7 GWh by 2027, according to industry analysis.

The Hungary plant has moved past trial operation toward a targeted 2026 mass-production start, and the company is set to receive more than KRW 200 billion in subsidies from the Hungarian government, a factor cited as offsetting part of the financial burden from expanding its European production base.

Whether separator supply to the major North American EV maker for 4680-type batteries actually begins, and whether supply to LG Energy Solution's cylindrical lines expands as planned, remain variables to confirm going forward.