- Company to expand manufacturing of lamps, brakes and steering parts, develop next-generation technologies - Raise logistical efficiency by making use of global network, advanced systems
Hyundai Mobis Co. (www.mobis.co.kr) is making a step towards becoming a global parts maker by expanding its global production network and manufacturing of core parts such as lamps, steering and brake systems.
The company told stock analysts and fund managers on March 9 at the Korea Exchange building here that it plans to invest 675 billion won, up 26.4 percent from last year. Mobis said at the investor relations session it will beef up sales by 5.4 percent to 8.61 trillion won and operating profit by 3.8 percent to 848 billion won. It also plans to bring the debt ratio down to 61.5 percent.
To achieve such goals, Hyundai Mobis said it will strengthen the manufacturing of core parts, develop an electronic chassis technology and expand global production bases and after-market parts exports.
Aiming to become one of the world’s top 10 parts makers, Mobis plans to innovate upon its management system to raise cost competitiveness amidst the Korean’s won’s climb and unstable oil prices.
In addition to enlarging production capacity at Jiangsu, China, Mobis will begin making modules in India, break ground for new factories in the Czech Republic and the southern U.S. state of Georgia, and push for construction of a second plant in Beijing. Having succeeded in supplying complete chassis modules to Chrysler last year, Hyundai Mobis will continue to seek to broaden its customer base.
The company plans to increase the production capacity of anti-lock brake systems and electronic stability control systems from the current million units to 2.4 million units, conventional brake systems from 1.7 million to 3 million units and airbags from 2.2 million to up to 3.25 million units.
As for steering systems, Mobis said it will double the output of motor-driven power steering systems and steering columns to 800,000 and a million units, respectively, while increasing the production of lamps from 730,000 to 2.03 million units.
The company also plans to double the number of its overseas logistics bases to 28 and integrate its domestic network to maximize customer satisfaction.
It will develop and extend new lucrative businesses by launching a second brand and stretching out its after-market business. Wider usage of the bar code system which helps keep track of product delivery would raise operational efficiency, Mobis said.
For research and development, Mobis has earmarked some 117.6 billion won in investment, up 26.5 percent from last year. The company plans to develop an integrated chassis control system which controls the steering, brake and suspension, head lamps with core functions and a safety system that puts the airbag, the belt and the steering part to work.