Now it’s time to take a close look at a small but competitive business making a difference for the Korean economy. Fuel additives are mixed with fuel to improve the performance of automobiles. Thus, they are sought after when oil prices go up. However, most fuel additives sold in Korea are imported. Against this background, there is a company working to localize fuel additives. We have been taking a look at Korean high-end auto parts-makers in the country and for the second installment of the series, we focus on EMAX SOLUTIONS, a company specializing in fuel additives. Joo Hyun-kyu of EMAX SOLUTIONS' sales support team explains.
The employees at EMAX SOLUTIONS, including the CEO, are made up of researchers who worked for decades at oil refineries to improve the quality of crude oil and petroleum products. The reason why these researchers decided to create EMAX SOLUTIONS is because they wanted to produce fuel additives locally. Our CEO used to work as a researcher for Kyung-in Energy, which used to be a part of Hanhwa Group. He currently also holds a post at the Korea Research Institute of Chemical Technology and is in charge of carrying out government-led research projects.
Established in 2002, EMAX SOLUTIONS is made up of experts who researched and developed petroleum and crude oil products, as well as fuel additives, at oil refineries. These experts came together to create a company that could focus on saving the environment and conserving energy. That is why the company's name is EMAX as they want to maximize efforts to find solutions for the environment, energy, and economy.
Fuel additives are mostly produced by global firms because of the sheer size of the market and also because of any possible claims that might arise. When EMAX SOLUTIONS was first founded, there wasn't a single company in Korea that produced fuel additives. It's because if there is a claim due to the company's product, it had to be strong enough to be able to counter that claim. We are using our own technology to put together the different additive components and we are concentrating our efforts on R&D. The company was created through faith in our CEO who worked at an oil refinery for two decades. We trusted him because of his extensive knowledge on what kind of additives are used by the oil refining industry, as well as what kind of products are in need of development and how they can be applied to the market.
Even if the same fuel additive is used, it works differently depending on the type of vehicle, the size of its fuel tank, how old it is, and its mileage. That is why it is advantageous for a local company to produce an additive that can respond to each situation quickly. Although it was difficult for local companies to jump into the market dominated by global companies, EMAX SOLUTIONS was able to because of its confidence in technology. Even before the company was founded, it developed heavy oil stabilizers and moved on to developing lubricity improvers, nanoparticle heavy oil stabilizers, and engine cleaner additives among others, and started supplying these products to major oil refineries. After getting 18 patents and applying for nine more, EMAX SOLUTIONS developed their leading product, "MaxSaver".
MaxSaver was developed on our own based on fuel additive localization technology developed by the Korea Institute for Chemical Technology in 2006. What's important is how many components are actually effective, not the amount. Our product is a high concentration premium fuel additive, which minimizes the amount of dilution solvent and packs in active ingredients. That is why MaxSaver has outstanding cleaning properties to help recover an old engine's functions and keep the engines clean. It also dramatically reduces exhaust emissions to improve an engine's starting ability, as well as the road driving ability and ride comfort of a vehicle.
MaxSaver, developed while carrying out a national research project with the Korea Institute for Chemical Technology in 2006, is a multi-purpose premium fuel additive. Although the research was initially conducted with the institute, EMAX SOLUTIONS worked hard to use its own technology to finish developing the product. Not only does it enhance the car’s performance, it prolongs the engine life while reducing the vibration and noise while driving. It also reduces energy usage and provides a more comfortable ride. In order to meet the different requirements, EMAX SOLUTIONS tested various prototypes with different ratios of components. Each prototype underwent rigorous testing to improve the quality. After years of hard work, MaxSaver was created and it is receiving rave reviews.
Our own tests showed that MaxSaver helped the fuel efficiency of a vehicle improve by 4.8% and it has been getting a lot of positive reviews from car enthusiasts who have plenty of knowledge about engines. They say that the noise level decreased dramatically after using MaxSaver. These favorable reviews have also helped with sales. Since 2015, we've been seeing an increase of over 100% each year in sales.
After it was released in 2013, sales have increased dramatically each year. Based on the positive sales figures, EMAX SOLUTIONS is planning on entering the international market.
We are currently trying to export MaxSaver to Cambodia, and the deal is likely to be finalized soon. We plan on exporting to five countries in Southeast Asia to expand our international network. We also plan on developing additives not just for cars, but also for oil refineries and exporting them as well to become a global company.
Korea imports more than 95% of fuel additives, but EMAX SOLUTIONS has paved the way for domestic firms in the sector. We look forward to seeing how this company will branch out into the international market with its high-quality products.