- Investments totaling 70 billion won... Annual sales of 150 billion won by 2012
- Annual production capacity of 1 million units... World's top-notch production line in terms of automation equipments and defect ratio
Hyundai MOBIS (www.mobis.co.kr) is ramping up speed in the development of core parts for futuristic vehicles by taking various measures, including the recent conclusion of a contract with Samsung LED for joint development of an LED for vehicle headlamps. The company took a step further and commenced operation of a lamp factory in Gimcheon, North Gyeongsang Province, thereby fully launching its headlamp business.
The Gimcheon headlamp factory, which was built based on an investment of 70 billion won, has a mass production system in place, leading to forecasts that Hyundai MOBIS will achieve an annual sales volume of 150 billion won in the lamp business sector by 2012. It is expected that the company will enjoy increased profitability from higher quality modules and relevant synergy effects.
A vehicle headlamp is a core part that is used for the front end module, which is regarded as one of the three core modules, together with chassis and cockpit modules. It is recognized as a leading automotive part that can generate high added value, together with the airbag and brake device.
Hyundai MOBIS now has a lamp production system with a total capacity of 5 million units that includes the Gimcheon factory, with an annual production capacity of 1 million units; IHL, a company specializing in vehicle lamp production that Hyundai MOBIS is operating based on 100% financing; and the Jiangsu lamp factory in China. This marks the starting point of Hyundai MOBIS' growth into a company that stands on an equal footing with Japan's Koito and Germany's Automotive Lighting, which are currently dominating the global market.
The Gimcheon factory, which fully launched mass production, adopted a state-of-the-art production system that is usually applied to ultra-precision product production lines in order to maintain the world's top-notch lamp quality.
To ensure zero defects, the factory employed the 'fool proof' system throughout all manufacturing processes, including the electric injection molding machine, painting machine, light distribution lab, and durability and reliability testing equipments. When an employee at a factory makes a mistake, the defect is automatically fixed in a later process.
Moreover, Hyundai MOBIS became the first in Korea to adopt automation and purification systems for key processes, such as injection molding, surface treatment, and assembly lines. These systems thoroughly prevent the entry of dust at the 50 thousand class unit or less. A standard of 50 thousand class or less is customarily applied to ultra-precision product processes, such as LCD, optical lens, and microfilm manufacturing.
Installation of the headlamps manufactured at the Gimcheon factory will begin with the 'Sorento R,' the revamped Sorento model. The headlamps will later be used for the 'VG,' a semi-large sedan of Kia Motors that will be mass produced at the end of this year, the new model of Lotze which is planned for mass production in the second half of 2010, and the new model of Verna.
Hyundai MOBIS is conducting various activities to receive orders from European, Japan, and other overseas finished car companies. The company has been making visits to key finished car and parts companies in Japan to hold parts exhibitions that demonstrate the excellence of its products. A Hyundai MOBIS official said that the company is close to concluding a huge contract, thanks to the high quality and price competitiveness of its products.
Director Lee U-seok with the Gimcheon Lamp Production Team showed confidence by saying, "Hyundai MOBIS has reached a globally advanced level in terms of automation and the defect ratio, even in comparison with advanced foreign companies, including Japan's Koito and Germany's Automotive Lighting. We will have finished car companies visit us to purchase our products by engaging in thorough quality control and employing a wide array of new technologies.
Hyundai MOBIS proved its high level of competitiveness against the backdrop of the global economic downturn by posting a net income of 1 trillion won last year. It is expected that the company will be able to ramp up speed of its core automotive parts manufacturing business, such as the manufacturing of steering systems (including the MDPS and steering column) and safety devices (including the brake system and airbag), with the full launch of lamp production at the Gimcheon factory.