Plask to enter the cooling equipment business through Dongmyeong Machinery acquisition, targeting AI data center demand

[Financial News] KOSDAQ-listed Plask is pursuing the acquisition of Dongmyeong Machinery, a manufacturer of industrial refrigeration and air-conditioning equipment components. The plan is to secure a manufacturing base with an established partnership with LG Electronics and respond to growing demand in the cooling equipment market, including for AI data centers.
Plask said on the 6th that it had signed a share purchase agreement to acquire 38,000 common shares of Dongmyeong Machinery for about 8.5 billion won. The acquisition covers 100% of Dongmyeong Machinery’s shares, with the full purchase price to be paid in cash. The transaction is expected to close on February 19, 2027.
Dongmyeong Machinery, which operates a production facility in Wanju County, North Jeolla Province, is a specialized manufacturer of industrial refrigeration units and heat exchangers. A Tier 1 supplier to LG Electronics, it supplies key components for large-scale refrigeration units. Its revenue in 2025 was about 7.6 billion won, of which sales related to LG Electronics accounted for 89%.
The company also has a track record of producing components used at overseas power facilities. It has experience manufacturing air-conditioning equipment components for projects including the Barakah Nuclear Power Plant in the United Arab Emirates (UAE) and nuclear power projects in India.
Plask is focused on the expansion of its major customer LG Electronics’ cooling solutions business. LG Electronics is developing cooling for AI data centers as a key growth business and expanding its global supply base. Last October, it signed a long-term contract to supply cooling solutions at a scale of 5 GW with a North American data center infrastructure company. Cumulative orders through the third quarter of this year exceeded 3 trillion won, and the company is also investing 220 billion won to expand production capacity in response to rising orders.
Plask expects this business expansion by its customer to also have a positive effect on expanding supply opportunities for Dongmyeong Machinery. After the acquisition, it plans to invest in additional production facilities to strengthen manufacturing capabilities and meet growing demand for cooling equipment. Its strategy is to pursue revenue growth by increasing deliveries to existing customers and securing new orders.
An industry source said, “For demand for data center cooling equipment to translate into results for component manufacturers, it must be backed by expanded orders from customers as well as the ability to meet quality and delivery requirements.” The source added, “Companies that expand production capacity on the basis of existing partnerships can broaden their supply opportunities, but the actual scale of growth will depend on securing orders and facility utilization rates.”
The acquisition also marks an opportunity for Plask to expand its business portfolio into manufacturing. The company’s strategy is to diversify its revenue base by adding industrial cooling equipment component manufacturing to its existing businesses and establish a foundation for new businesses to support medium- to long-term growth.
However, Plask has filed for an injunction to suspend the effect of the Korea Exchange’s delisting decision. Trading in its shares has been suspended, and delisting procedures, including liquidation trading, are on hold until a court decision is confirmed.
A Plask representative said, “Dongmyeong Machinery is a company that has built up manufacturing technology and supply experience through long-standing cooperation with LG Electronics.” The representative said, “After the acquisition, we will invest in facilities and expand production capacity to respond to market demand and ensure that increased supply leads to actual revenue growth.” The representative added, “With this acquisition, we plan to secure a manufacturing base while identifying business opportunities in AI data centers and industrial cooling equipment, and focus on enhancing corporate and shareholder value over the medium to long term.”
[email protected] Choi Doo-seon Reporter