Taewoong, a specialized forging company, is accelerating its follow-up orders in the small modular reactor (SMR) business of the U.S. nuclear firm TerraPower. After entering the TerraPower supply chain with its first order in June, the company is now leveraging its existing trading experience and vendor registration to secure additional volumes. The company anticipates that discussions for follow-up orders could materialize within the next three to four months.
According to the financial investment industry on September 15, Taewoong is pursuing a plan to supply additional volumes related to TerraPower's Natrium SMR project through the Canadian company Marmen. TerraPower, which is constructing its first commercial sodium SMR in Kemmerer, Wyoming, announced 12 new supply contracts at the end of last month, expanding its supply chain. Among these, Marmen is responsible for the design of the nuclear fuel transfer lift.
Marmen is a Canadian company that processes and manufactures large components for the nuclear, aerospace, and heavy industries. TerraPower previously selected Marmen as the manufacturer for the rotating plug of the sodium SMR. Taewoong entered the TerraPower supply chain for the first time by securing related forged products from Marmen in June. Discussions for the order with TerraPower began in November of last year and took about seven to eight months to finalize.
This time, the situation is different, according to the company. With established trading performance related to TerraPower and completed vendor registration, discussions for follow-up volumes are expected to progress more quickly than during the first order. While additional orders have not yet been confirmed, the company believes that negotiations could become concrete within the next three to four months. A Taewoong representative stated, "There is a sufficient possibility for additional orders, and we expect progress soon."
The characteristics of forged products for nuclear power also support the potential for follow-up orders. Nuclear components require high quality standards and certification processes, making it difficult to replace suppliers once a company has participated in the initial development and delivery process.
Existing cooperation with Marmen is also a competitive advantage. Taewoong reportedly supplied approximately 15 billion won worth of forged rings for launch pads to SpaceX and Blue Origin through Marmen between 2022 and 2023. The ongoing trading relationship with Marmen in the aerospace sector is now expanding into the nuclear field, increasing the likelihood of securing additional supply opportunities for large projects in the future.
In particular, Taewoong is also solidifying its SMR cooperation with HD Hyundai Heavy Industries. HD Hyundai Heavy Industries was selected as the preferred negotiator for the manufacturing and supply of key equipment for sodium reactors in May and has recently decided to invest 238.6 billion won in establishing a dedicated SMR equipment manufacturing plant at its Ulsan shipyard.
This has created an atmosphere for expanding cooperation between Taewoong and HD Hyundai Heavy Industries. Discussions among the management teams of both companies have recently taken place, and a meeting of practical personnel is scheduled for this month. Building on their existing trading relationship in the shipbuilding sector, including forged products for ship engines, they are looking to broaden their collaboration into the SMR field to explore new order opportunities.
With the expansion of orders, expectations for improved performance are also growing. IBK Investment & Securities forecasts Taewoong's revenue for this year to be 394.6 billion won, with operating profit projected at 21.5 billion won. This represents a year-on-year increase of 12.8% in revenue and 328.9% in operating profit. Researcher Yoo Chang-geun stated, "This year is expected to be a turning point for performance recovery, as high-margin orders in the nuclear and power generation sectors continue, leading to a clearer improvement in results over the years."
Recently, Taewoong's stock price has been on the rise. It increased by 22.89% from 30,800 won on August 25 to a closing price of 37,850 won the previous day. Although it experienced a 3.81% decline compared to the previous trading day, it still maintains a price in the upper 30,000 won range.
* This article has been translated by AI.
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