- Wuxi Mobis to Play Crucial Role in Mobis’ Global Business - Annual Sales in China to Reach W300 Bil. by 2007
Hyundai Mobis has taken over a Korean auto parts maker in China, signaling an aggressive investment in the world's fastest-growing automobile market.
The acquisition of the firm in China's Jiangsu Province, which produces brake and steering systems, is part of a Mobis plan to strengthen global supply network and expand businesses in emerging markets.
The company, which has been renamed as ``Wuxi Mobis, will produce up to 1 million brake systems annually from the current 100,000 and up to 1 million steering pumps from the current 200,000 by 2007.
The Hyundai Motor affiliate is hoping for annual sales of 300 billion won in China in 2007, making it the largest South Korean auto parts maker in China. Its annual sales currently hover at 3 billion won.
For the goal, Hyundai Mobis plans to establish new facilities in China to manufacture various key auto parts, including brake systems, steering pumps and steering assemblies.
Currently, Mobis provides products to Hyundai Motor and Kia Motors, its key affiliates, to help their operations in China. By 2007, the Wuxi Mobis will be able to provide services to other global automakers, as well as Hyundai and Kia operations in India and Slovakia.
Mobis will set up a test center at the Wuxi Mobis to help it improve the quality of products.
The company expects Wuxi Mobis to play an important role in Mobis’ expansion in China and raising the bar of China’s auto parts technologies.
In June, Mobis took over local parts maker Kasco, which produced brake systems, steering systems, power strain systems and various low-end items.
It won a 200 billion won ($192 million) order in early July to supply brake systems for five new models produced by Hyundai Motor and Kia Motors by 2008.
Until the end of next year, Hyundai Mobis plans to invest 51 billion won to set up a test center inside an industrial complex in Sosan, South Chungchong Province. The test center will include a round-shape test drive course and a number of facilities that will used to examine the quality of various auto parts.