EcoPlastic Corporation Business Report up until FY ended Dec. 2013

Business Highlights

Highlights in Recent Years

Financial Overview (Consolidated)

(in millions of won)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of
change
(%)
Remarks
Sales 968,194 832,053 16.4 -
Operating
income
8,042 5,193 54.9 -
Net
income
2,171 2,856 (24.0) -

Contracts

-The Company is supplying rotating cup holders to the KIA Motors' Morning. The holder, when it isn't being used to hold cups, can be used as additional storage space. (From a May 3, 2012 press release)

-The Company was awarded a program business from Hyundai Motor to provide console assemblies. Starting in December 2013, the company will supply the products to the successor model to the YF Sonata. (From a press release on March 15, 2012)

-The Company won a contract from Mitsubishi Motors Corporation to supply cover grilles. The agreement, which is for a period between March 2011 and September 2012, is expected to generate 2,090 million won in sales. This marks EcoPlastic's first business with a Japanese carmaker. (From a press release on November 18, 2010)

-The Company won a contract from Hyundai Motor to supply fender panels for hybrid vehicles. This program business is expected to add approximately 1.2 billion won to the company's annual revenue. (From a press release on September 16, 2010)

-The Company was awarded a contract from Hyundai Motor to supply bumpers for hybrid vehicles that the auto maker manufactures. The agreement is expected to add approximately 4.5 billion won a year to the company's sales. (From a press release on September 2, 2010)

-The Company developed a new side sill molding. The product, which has passed a series of reliability testing, will be used in the Hyundai Equus. (From a press release on August 18, 2009)

-The Company won a contract to supply bumpers and consoles to Hyundai Motor Co., Ltd. These components will be featured on the succeeding model of the Avante. The business is expected to bring in additional 40 billion won in sales each year, which is equivalent to 10.9 percent of the company's revenue for last year. (From a Press release on March 10, 2009)

-The Company won a contract from Hyundai Motor to supply bumpers for installation on the successor model to the Verna small sedans. This program is expected to generate 16.7 billion won in sales each year, which is equivalent to 5 percent of the Company's FY2007 revenue. (From a press release on October 28, 2008)

-The Company was selected by Hyundai Motor to develop luggage floor box parts for the successor model to the Hyundai Trajet. This business is expected to be worth 3.6 billion won in annual sales. (From a press release on January 29, 2008)

-The Company was selected by Kia Motors to develop and manufacture console products for the successor model to the Kia Sportage. The business is expected to add approximately 6.5 billion won to Eco Plastic's annual revenue. (From a press release on January 28, 2008)

-The Company was awarded a contract from Hyundai Motor to develop and manufacture bumper and console components. Specifically, the Company will supply bumpers for the Sonata, and bumpers and console components for the JM Tuscon. This new business is expected to generate sales of 46 billion won per year, which accounts for 13.8 percent of its revenue in fiscal year 2006. (From a press release on August 17, 2007)

Share transfer conducted

-In January 2010, Plakor sold the shares of stock (35.1 percent) it had in the Company to Seojin Clutch Co., Ltd., a clutch parts manufacturer based in Siheung City, Gyeonggi-do.

-ARRK Corporation, a designer and manufacturer of dies based in Osaka, Japan, announced that Plakor Corporation, which is its consolidated subsidiary, has acquired all 7.6 million shares or a 40 percent share of the Company held by Hyundai Mobis. Plakor paid 3,458 million yen for the deal, and obtaining the management rights of the Company. Plakor was established in 1989 to manufacture dies for bumpers and other automotive products. It is headquartered in Hwaseong city, Korea. (From a news release by the company on February 16, 2007)

Acquisition

-The Company will acquire 69.51% of the equity shares of Korean auto-parts supplier KOMOS for 13,250 million won. KOMOS, located in Hwaseong, Gyeonggi-do, manufactures steering wheels, consoles, wheel covers, and other automotive parts, supplying them mainly to Hyundai, Kia, and GM Korea. (From a July 27, 2012 press release)

-The Company will acquire 100.0 percent shares of AIA Corporation from Hyundai WIA Corporation. EcoPlastic will spend 14 billion won for the deal, making AIA its wholly-owned subsidiary. Based in Ansan, Gyeonggi-do, AIA manufactures anti-vibration products including engine mounts and transmission mounts, rubber products including weather strips and hoses, and plastic products including bumpers. (From a press release on December 31, 2010)

Divestiture

-In June 2007, the Company transferred all, 50 percent of the shares it held in IHL to Hyundai Mobis in a move to focus more on its core plastic parts business. Prior to this move, in March, 2007, Koito Manufacturing had sold its 50 percent stake in IHL also to Hyundai Mobis.

R&D

R&D Structure

-The Company established a technical research center in 1987.

R&D Expenditure (Non-consolidated)

(in millions of won)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Amount 1,701 1,224 1,212
% of Sales 0.3% 0.2% 0.2%

 

Recent Developments

-In December 2011, the Company developed a new in-vehicle cell phone holder. This product is applicable to any kinds of cell phone, regardless of sizes and types. This holder will be supplied to new vehicle models of Hyundai Motor. (From a press release on December 15, 2011)

-In 2010, the Company developed rotating cup holders.

-In 2009, the Company developed tilting/sliding armrests.

-The Company developed a new side sill molding. The product, which has passed a series of reliability testing, will be used in the Hyundai Equus. (From a press release on August 18, 2009)

Technology Agreement

-The Company signed a technology agreement with a France-based plastic manufacturer Plastic Omnium. This agreement will enable EcoPlastic to utilize Plastic Omnium's production technologies, technology information and industrial property rights, so as to develop and manufacture auto parts such as fender panels and modules; tailgate panels and modules; and back beams. The contract period is between November 2010 and November 2012. (From a press release on November 4, 2010)