Ilshin Environmental Engineering sharpens technological edge, readies for global advance

The Korea Herald, in collaboration with the Korea Environmental Industry & Technology Institute, is presenting a series of articles introducing small but promising environmental tech firms. The following is the fifth installment. ― Ed.


From a small technology venture to one of Korea’s top 10 green innovators, the story of Ilshin Environmental Engineering Co. much resembles the history of Korea’s environmental industry itself.

Started in 1991 by a group of college graduates, the firm’s mission was to cater to small factories in Guro, an industrial district in western Seoul, which were puzzled by the country’s ever-growing list of environmental rules.

After two decades of supporting local manufacturers with their clean-up headaches, the company now looks to sharpen its competitiveness by focusing on target areas and go beyond the nearly saturated local market.

“Back in 1991, and for many years that followed, the focus of ours and our clients was pollution reduction,” said Yoo Nam-jong, one of the founding members now leading the firm as CEO.

“We provided A to Z on environmental matters ― from air and wastewater treatment facilities to consulting services on environmental laws and standards.”

Some of its clients have grown to become heavyweights in their chosen field and now offer their shares on the KOSDAQ, the country’s IT-loaded stock exchange.

Many still maintain a partnership with Ilshin.

“They are our No. 1 assets. We grew with them through ups and downs and became what we are now,” the CEO said. 

Building on its experience as a total solutions provider catering to small firms, Ilshin is now preparing for a major leap forward to become a green tech leader in the water industry.

Phosphorus and nitrogen removal technologies are one area that Yoo is currently focusing on to fuel that leap.

Total phosphorous removal in sewage and industrial wastewater treatment processes is a hot issue in Korea now after the outbreak this summer of green algae in major rivers. Phosphorus, an essential plant nutrient, stimulates the growth of algae in rivers and lakes.

The Korean government from this year drastically lowered limits on phosphorus levels discharged from municipal wastewater treatment facilities ― from 2 parts per million to 0.3 ppm.

The change had to do with the “four-river refurbishment project,” for which the government spent 22 trillion won ($20 billion) in dredging and damming the country’s four main rivers, including the Nakdong.

As the project was expected to increase water volume and slow the flow of water, increasing the likelihood of eutrophication ― overgrowth of algae caused by excess nutrients ― the authorities needed to control other factors that contribute to the phenomenon.

For environmental firms like Ilshin, it meant a lucrative new market.

Ilshin’s total phosphorus removal technique, which uses hydrous ferric oxide-coated media to absorb phosphorus, has won the “New Excellent Technology” authentication from the government.

Its leadership in the area resulted in the company’s inclusion earlier this year in the Environment Ministry’s list of top 10 environmental firms, Yoo said.

“Taking a step further, we’re now investing in a technology to remove both phosphorus and nitrogen concentrations in a single process,” Yoo said.

In another ambitious step, the company has started a new business this year with the clear aim of overseas markets ― water purification.

Pure water is needed for steam boilers in a variety of industrial plants including power plants and is also used in manufacturing, including that of semiconductors.

It landed its first deal, worth $1 billion, earlier this year to supply a water treatment system to local steelmaker POSCO’s plant in Mexico.

“It will be our new growth driver,” Yoo said.

Traditional businesses ― such as industrial wastewater and sewage treatment facilities ― accounted for nearly 60 percent of the company’s revenues last year.

But the share will fall to 40 percent this year, as the phosphorous removal and pure water business divisions bring in more revenue, the CEO said.

Ilshin, unlisted, reported 19.6 billion won in revenues in 2011 and expects a 20 percent increase this year.

By Lee Sun-young (milaya@heraldcorp.com)