MOBIS to Set Up Transmission Manufacturing Plant in Beijing
Based on a Board of Directors' resolution on February 18, MOBIS established a transmission manufacturing plant in the industrial site in Tongzhou District, Beijing, under the name of Beijing-MOBIS Transmission Corporation, which will supply both Beijing-Hyundai and Dongfeng Yueda Kia.
MOBIS invested a total of US$75 million for the plant on a 62,000-pyong site (one pyong=about 3.3 sqm). To be equipped with a production capacity of about 100,000 units by 2004 and 200,000 units by 2006, the plant will mass produce transmissions for Avante and EF Sonata starting from 2004, with a sales target of 100 billion won by 2006.
The transmission project was conceived to meet the increasing demand due to the establishment of new Hyundai and Kia manufacturing plants in China, including Hyundai's new Beijing facility and Kia's plant in Guangdong. Hyundai and Kia's combined vehicle production in China is expected to exceed 1 million unites by 2010. In addition, Mobis' new transmission plant is expected to supply third country demand from China.
Meanwhile, Mobis' Board of Directors decided to increase the dividend rate by 2% per common share face value to a total of 14%. The board reported that 2002 turnover reached 4.13 trillion won, a 39.5% year-on-year increase from 2.96 trillion won in the previous year. Current profit was 580 billion won, up 39.3% from 420 billion won in 2001. Net profit also grew 38.6% to 400 billion won from 290 billion won in the previous period.
The record high results were attributed to Mobis' module sales, where turnover grew threefold to 1.96 trillion won from 360 billion won in 2001. Parts and components exports as well as after-service parts were up as well, contributing to the improved corporate performance.
This year, Mobis is concentrating on the development of high value-added products including car navigation systems and telematics. The company expects its module business to generate a turnover of 2.7 trillion won in 2003, up 37% year on year, and total turnover to reach 4.7 trillion won.