Essen Tech sees rising domestic and overseas demand for 3-in-1 refrigeration ball valve

Heating, ventilation, air conditioning and refrigeration (HVACR) equipment operates out of sight across virtually every corner of modern life and industry — outdoor units and chillers in large buildings, logistics warehouses, refrigerated trucks, hypermarket machine rooms, ships, data centers, food factories and semiconductor plant clean rooms. It is a sector that grows in step with rising living standards and industrial development.

Essen Tech, led by CEO Kim Sung-bum, manufactures ball valves — a core component of HVACR equipment — and supplies them to companies at home and abroad. The company specializes in brass components including brass ball valves and refrigeration ball valves, with custom order-based production tailored to each customer's needs.

In HVACR systems, ball valves improve maintenance convenience. When replacing specific components such as a compressor or filter, technicians can isolate the work area by closing the ball valve rather than recovering refrigerant from the entire system. Ball valves also provide safe refrigerant isolation, quickly preventing large-scale leaks in the event of a malfunction or pipe failure.

Essen Tech has developed a pressure-relief integrated "3-in-1 refrigeration ball valve" and is expanding its foothold in the global market. The product combines the functions of a ball valve, check valve and relief valve into a single high-value-added unit. Demand is growing, particularly in North America and Europe, and the proliferation of AI data centers is creating additional opportunity.

Conventional refrigeration piping typically requires a ball valve, check valve and filter dryer to be installed separately. Using a 3-in-1 combined valve minimizes the risk of refrigerant leakage, simplifies the piping structure to save installation space, and reduces both material and labor costs — giving the product a strong competitive edge.

"The market for eco-friendly natural refrigerant (CO₂)-based refrigeration and air conditioning systems is growing rapidly, and demand for our valve products — which maintain stability even in high-pressure environments — is rising accordingly," Kim said Thursday. "In particular, our pressure-relief integrated 3-in-1 refrigeration ball valve has earned recognition from overseas customers for its competitiveness, and demand is expanding, centered on the North American and European markets."

Kim joined Daechang, Essen Tech's parent company, in 1988 and spent more than 30 years in the materials and components industry, gaining experience across production, technology, sales and management. He led the establishment of Daechang's melting and extrusion facilities and conducted overseas sales targeting global fitting and valve companies. After serving as head of the Daechang Group's management division, he moved to Essen Tech as CEO in 2025, formally taking office after being appointed as an inside director in March.

"The product upgrades and overseas market push we have pursued over the past several years are beginning to bear fruit this year," he said. "Exports are expanding and profitability is improving at the same time, strengthening the fundamental character of the business."

With exports accounting for 45 percent of its revenue, Essen Tech has been benefiting from the high exchange rate environment. The currency tailwind is contributing to improved profitability. The company posted sales of 57.9 billion won ($37.6 million) and operating profit of 1.9 billion won last year. This year, sales are forecast to rise significantly to 63 billion won, with operating profit projected at 4 billion won.

"Export volumes continue to grow, driven by existing customers, and our presence in overseas markets is gradually expanding," Kim said. "Both export volume and sales of high-value-added products are on the rise."

Essen Tech operates an integrated production system spanning forging, processing and assembly, which the company says allows it to secure both price and quality competitiveness. It plans to further strengthen its technological capabilities in line with the industry shift toward eco-friendly refrigerants and energy efficiency.

"We have spent years restructuring the business and building a profitability-focused management framework," Kim said. "This year, we are seeing those efforts pay off one by one. This year will be the first year of a new leap forward."