Hyundai WIA Corporation (Formerly WIA Corporation) Business Report FY ended Dec. 2014
Highlights in Recent Years
Financial Overview (Consolidated) |
(in millions of won) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | Rate of Change (%) |
Remarks | |
| Sales | 7,595,605 | 7,091,993 | 7.1 | -Sales at the automotive division totaled 6,220,764 million won, which made up 81.9 percent of the overall sales. |
| Operating income | 525,640 | 529,239 | (0.7) | - |
| Net income | 429,188 | 425,007 | 3.3 | - |
Outlook
-The Company expects its sales to reach KRW 8,062,000 million in 2015. (From a press release on January 23, 2015)
New Company
<Mexico>
-The Company established a 99.9% owned subsidiary, Hyundai WIA Mexico S.DE R.L. DE, in September 2014. The Mexican subsidiary will produce engines and constant velocity joints.
<China>
-The Company established a 100% owned subsidiary, Beijing WIA Turbocharger Co., Ltd., in July 2014. The Chinese subsidiary will produce engines and turbo chargers.
Acquisitions
-A consortium consisting of Hyundai Steel, the Company, and Hyundai Hysco announced that it has acquired Dongbu Special Steel Co., Ltd. for KRW 294.3 billion by investing 50 percent, 40 percent, and 10 percent of the total amount, respectively. Dongbu Special Steel is headquartered in Seoul. It produces steel wires for cold heading/cold forging and steel rods at its plant in Pohang, Gyeongsangbuk-do. (From a press release on November 28, 2014)
-The Company announced that it will absorb both Hyundai Metia and Hyundai Wisco effective November 1, 2014. Hyundai Metia produces cast iron products at its main plant in Changwon, Kyongsang-namdo and its Ulsan Plant. Its sales reached KRW 356,794 million in 2013. Meanwhile, Hyundai Wisco manufactures forged products also in Changwon and Ulsan. It generated KRW 613,567 million in sales during 2013. (From a press release on August 19, 2014)
R&D
R&D Structure
| Facility | Location |
| Korea | |
| Automotive Parts Research Institute | Uiwang, Gyeonggi-do |
| Hwaseong Drivetrain R&D Center | Hwaseong, Gyeonggi-do |
| USA | |
| Hyundai WIA America Technical Center | Farmington Hills, Michigan |
R&D Expenditure (Consolidated) |
( in millions of won ) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |
| Amount | 70,979 | 53,901 | 37,657 |
| % of Sales | 0.9% | 0.8 | 0.5 |
R&D Achievements
| Product | Research bodies | Areas of development/achievements |
| Vehicle components | ||
| High bending angle ball joints | -Hyundai WIA America Technical Center | -Mass production of ball joints with a larger bending angle of more than 50 degrees |
| High-efficiency ball joints | -Hyundai WIA America Technical Center | -Development project completed |
| Cross groove joints | -Hyundai WIA America Technical Center | -Development project completed -Mass production of the product started for the Kia K3, the Hyundai Genesis and the Hyundai Genesis Coupe |
| Ultra-high bending angle ball joints | -The Company | -Prototype development and assessment of joints with a larger bending angle of more than 55.5 degrees |
Investment Activities
Investment in Korea
-In November 2014, the Company announced that it will invest KRW 144.4 billion to build a new engine plant in the Seosan Auto Valley in Chungcheongnam-do. The new plant will be able to produce approximately 100,000 engines per year to meet expected growth in demand for small engines in the mid- and long-term perspective. The investment period is between March 2014 and March 2016. (From a press release on November 21, 2014)Investment in other countries
<Mexico>-In January 2015, the Company has signed an agreement with the state of Nuevo Leon, Mexico to build a plant in Pesqueria in the suburbs of Monterrey. The company will invest approximately KRW 400 billion in this project, planning to complete the construction by the end of 2016. The Mexican facility will produce engines, constant velocity joints, and other vehicle parts for automakers' plants in Mexico. (From a press release on January 16, 2015)
Recent Capital Investment Projects/Automotive Parts
|
(in billions of won) |
| Amount invested (FY ended Dec. 31, 2014) |
Planned amount of investment | Total | Purpose of investment |
|
| Automotive parts | 124.5 | 95.9 | 220.5 | -Preparing production lines to manufacture components for new vehicle models and developing new technologies |