Kefico Corporation Business Report up until FY ended Dec. 2013
Business Highlights
Recent Highlights
Parent company change
Contracts
-In September 2013, the Company started to mass produce its new variable force solenoid valves. The new products will be initially supplied for the Kia Carens. They will be also used on the Hyundai Avante and Accent, as well as on the Kia K3 and Soul. These solenoid valves will be produced both at Hyundai Kefico's Gunpo Plant and at a cooperative supplier of Hyundai Kefico. Their total production volume is expected to reach approximately 9.5 million units per year. (From a press release, October 4, 2013)
-In July 2013, the Company started to mass produce new hydraulic sensors. These sensors will be installed on the successor model (development code: PS) to the Kia Soul. Kia is planning to build approximately 200,000 units of the new model per year. (From a press release, October 4, 2013)
-In January 2013, the Company commenced mass-production of electric conductivity sensors for fuel cell vehicles. The sensor products will be used in the fuel stacks on the Hyundai Motor Tucson ix FCEV model. The sensor system is designed to measure electric conductivity of the cooling water to notify the driver of the optimum timing to change the cooling water. (From a press release, January 25, 2013)
-The Company is supplying a number of components for Hyundai Motor's all-new Santa Fe. Kefico's products to be incorporated in the new vehicle will include ECUs for 4WD couplings, oxygen sensors, boost pressure sensors, camshaft-position sensors, inhibitor switches, speed sensors, solenoid valves, and transmission control units. (From a press release, July 19, 2012)
-The Company announced that it is delivering the following product items to Kia Motors' compact passenger car, the Ray: powertrain control units, purge control solenoid valves, fuel injectors, electronically controlled throttle valves, and a variety of sensors such as speed sensors, oxygen sensors, knock sensors, camshaft-position sensors, and crankshaft position sensors. (From an April 30, 2012 press release)
-The Company succeeded in developing and manufacturing vehicle control units (VCUs) and battery management systems (BMSs) for electric vehicles locally in Korea. These products will be installed in the Kia Ray, a mini crossover-utility-vehicle. (From a press release on November 15, 2011)
Production
-The Company succeeded in developing and manufacturing injectors for gasoline direct injection (GDI) engines locally in Korea. Mass production of these products started in October 2011, and the company is going to produce 2.4 million GDI injectors a year initially. It is intending to construct a second production line for the product, which is scheduled to begin commercial operation in August 2012. (From a press release, October 14, 2011)
-The Company started mass producing fuel injectors for LPG vehicles at its Gunpo plant in Gyeonggi-do, Korea in May 2011. Producing these injectors in Korea instead of importing them from overseas will enable the company to save approximately 12 billion won. (From a press release on May 20, 2011)
-In Feb. 2011, the Company held a ceremony to celebrate the completion of the new manufacturing facility in Haiduong Province, northern region of Vietnam. The Haiduong plant is currently producing electronic throttle controls and O2 sensors. The new factory will add speed sensors and knock sensors for automatic transmissions to the plant's product line. (From a press release on February 25, 2011)
-In Jul. 2009, the Company established KEFICO Vietnam Company Limited in the Dai An Industrial Zone, Hai Duong, which is a northern province of Vietnam. The company is investing 60 million USD in the new production facility, which is scheduled to be completed in Aug. 2010.
<China>
-In Feb. 2010, the Company's Rizhao plant in Shandong Province started mass production.
-In Nov. 2008, the Company established KEFICO Automotive Systems (Beijing) Co., Ltd. to manufacture and sell automotive components in China. The new entity has 4,351 million won in registered capital. (From a press release on Nov. 20, 2008)
Certification / Award
-In January 2014, the Company won five stars in the Hyundai Motor Group's technical rating. This rating system is intended to encourage its suppliers' improvement efforts to become more competitive in the international market. (From a press release on January 27, 2014)
-In January 2013, the Company announced that it has been awarded Hyundai's and Kia's five star supplier rating for the second half of 2012, earning the prize for the sixth consecutive year since 2007. (From a press release, January 25, 2013)
-The Company's ECU for bi-fuel systems was selected as a PACE-Award Finalist by Automotive News based in the U.S.A. This is the first time ever for a Korean supplier to win the coveted award in the powertrain field. (From a May 3, 2012 press release)
-A branch of KEFICO Automotive Systems (Beijing) Co., Ltd. in Rizhao, Shandong, China won a 2011 Excellent Supplier of the Year award from Dongfeng Yueda Kia. (From an April 30, 2012 press release)
Business Plan
The Company is aiming to achieve an annual operating revenue of 5 trillion won in 2020, which will be a profit margin of 6%. In addition, the Company is working to increase the percentage of products it sells to customers other than Hyundai and KIA, to 20%. (From a Sep. 28, 2012 press release)
Financial Overview (Consoidated) |
(in millions of won) |
| FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | Rate of change (%) |
|
| Sales | 1,666,971 | 1,524,398 | 9.4 |
| Operating income | 140,414 | 110,653 | 26.9 |
| Net income | 98,431 | 71,950 | 36.8 |
Parent company change
-The Company will become a wholly owned subsidiary of Hyundai Motors, after Hyundai acquires the 50% equity that Robert Bosch owns in KEFICO. (From a July 6, 2012 press release)
Contracts
-In September 2013, the Company started to mass produce its new variable force solenoid valves. The new products will be initially supplied for the Kia Carens. They will be also used on the Hyundai Avante and Accent, as well as on the Kia K3 and Soul. These solenoid valves will be produced both at Hyundai Kefico's Gunpo Plant and at a cooperative supplier of Hyundai Kefico. Their total production volume is expected to reach approximately 9.5 million units per year. (From a press release, October 4, 2013)-In July 2013, the Company started to mass produce new hydraulic sensors. These sensors will be installed on the successor model (development code: PS) to the Kia Soul. Kia is planning to build approximately 200,000 units of the new model per year. (From a press release, October 4, 2013)
-In January 2013, the Company commenced mass-production of electric conductivity sensors for fuel cell vehicles. The sensor products will be used in the fuel stacks on the Hyundai Motor Tucson ix FCEV model. The sensor system is designed to measure electric conductivity of the cooling water to notify the driver of the optimum timing to change the cooling water. (From a press release, January 25, 2013)
-The Company is supplying a number of components for Hyundai Motor's all-new Santa Fe. Kefico's products to be incorporated in the new vehicle will include ECUs for 4WD couplings, oxygen sensors, boost pressure sensors, camshaft-position sensors, inhibitor switches, speed sensors, solenoid valves, and transmission control units. (From a press release, July 19, 2012)
-The Company announced that it is delivering the following product items to Kia Motors' compact passenger car, the Ray: powertrain control units, purge control solenoid valves, fuel injectors, electronically controlled throttle valves, and a variety of sensors such as speed sensors, oxygen sensors, knock sensors, camshaft-position sensors, and crankshaft position sensors. (From an April 30, 2012 press release)
-The Company succeeded in developing and manufacturing vehicle control units (VCUs) and battery management systems (BMSs) for electric vehicles locally in Korea. These products will be installed in the Kia Ray, a mini crossover-utility-vehicle. (From a press release on November 15, 2011)
Production
-The Company began commercial production of fuel-injectors for the GDI engine. The Company plans to produce 2.45 million units a year, delivering them to Hyundai Motors' Gamma, Nu, Lamda 2, and Tau. In addition, the Company plans to bring a second production line into operation in August 2012. Also of note, is that the Company started mass-producing fuel-pumps for the GDI engines mounted on the Gamma, Theta, and Tau, aiming to produce 1.6 million units a year. GDI. (From a January 10, 2012 press release)
-The Company succeeded in developing and manufacturing injectors for gasoline direct injection (GDI) engines locally in Korea. Mass production of these products started in October 2011, and the company is going to produce 2.4 million GDI injectors a year initially. It is intending to construct a second production line for the product, which is scheduled to begin commercial operation in August 2012. (From a press release, October 14, 2011)
-The Company started mass producing fuel injectors for LPG vehicles at its Gunpo plant in Gyeonggi-do, Korea in May 2011. Producing these injectors in Korea instead of importing them from overseas will enable the company to save approximately 12 billion won. (From a press release on May 20, 2011)
Subsidiary
<Vietnam>-In Feb. 2011, the Company held a ceremony to celebrate the completion of the new manufacturing facility in Haiduong Province, northern region of Vietnam. The Haiduong plant is currently producing electronic throttle controls and O2 sensors. The new factory will add speed sensors and knock sensors for automatic transmissions to the plant's product line. (From a press release on February 25, 2011)
-In Jul. 2009, the Company established KEFICO Vietnam Company Limited in the Dai An Industrial Zone, Hai Duong, which is a northern province of Vietnam. The company is investing 60 million USD in the new production facility, which is scheduled to be completed in Aug. 2010.
<China>
-In Feb. 2010, the Company's Rizhao plant in Shandong Province started mass production.
-In Nov. 2008, the Company established KEFICO Automotive Systems (Beijing) Co., Ltd. to manufacture and sell automotive components in China. The new entity has 4,351 million won in registered capital. (From a press release on Nov. 20, 2008)
Certification / Award
-In January 2014, the Company won five stars in the Hyundai Motor Group's technical rating. This rating system is intended to encourage its suppliers' improvement efforts to become more competitive in the international market. (From a press release on January 27, 2014)-In January 2013, the Company announced that it has been awarded Hyundai's and Kia's five star supplier rating for the second half of 2012, earning the prize for the sixth consecutive year since 2007. (From a press release, January 25, 2013)
-The Company's ECU for bi-fuel systems was selected as a PACE-Award Finalist by Automotive News based in the U.S.A. This is the first time ever for a Korean supplier to win the coveted award in the powertrain field. (From a May 3, 2012 press release)
-A branch of KEFICO Automotive Systems (Beijing) Co., Ltd. in Rizhao, Shandong, China won a 2011 Excellent Supplier of the Year award from Dongfeng Yueda Kia. (From an April 30, 2012 press release)
Business Plan
The Company is aiming to achieve an annual operating revenue of 5 trillion won in 2020, which will be a profit margin of 6%. In addition, the Company is working to increase the percentage of products it sells to customers other than Hyundai and KIA, to 20%. (From a Sep. 28, 2012 press release)R&D
R&D Structure
| Year established |
Facility |
| 1992 | KETI (KEFICO Engineering Technology Institute) |
| 1996 | Application Center |
| 2005 | Reliability Center |
| 2010 | R&D Center (Electronic control system) |
-In December 2012, the Company annoounced that it will expand its R&D center in Gunpo City, which is dedicated to development of electronic control systems. Construction work of its research and testing facilities will begin in January 2013 and is expected to be completed by December 2014. (From a press release, December 10, 2012)
R&D Expenses |
(In billions of won) |
| FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | |
| Amount | N.A. | N.A. | 59.7 |
| Percentage of sales | N.A. | N.A. | 4.3% |
Recent Developments
FY2012-The Company developed and started mass-production of engine control units and solenoid valves for Kappa CVT engines.
-The Company developed and started mass-production of position sensors for Continuous Variable Valve Lift (CVVL) and non-contact, multi-purpose actuators.
FY2011
- The Company developed and started mass-production of injectors for GDI engines.
- The Company developed and started mass-production of LPI injectors.
- The Company developed and started mass-production of position sensors for Nu-CVVL engines.
- The Company developed and started mass-production of ECUs for panoramic sunroof systems.
- The Company developed and started mass-production of power control units for China-made NU engines.
FY2010
-The Company developed gasoline direct injection systems, which include powertrain controls units, delivery pipe modules, air fuel module systems, high pressure pumps and high pressure injectors.
-The Company developed ECUs for 4WD couplings.
-The Company developed non-contact electronic throttle controls.
-The Company developed multi-purpose actuators.
-The Company developed proportionally-controlled solenoid valves.
-The Company developed control systems such as hybrid control units, motor control units, battery management systems and air fuel module systems for the Hyundai Sonata Hybrid.
-The Company developed and started mass production of VFS solenoid modules and crankshaft position sensors for automatic transmissions.
FY2009
-The Company developed and started mass production of on/off solenoid valves.
-The Company developed hot film air flow sensors.
-The Company developed 6-speed transmission control units.
-The Company developed engine control units, high pressure sensors and fuel rails for gasoline direct engines.
-The Company developed engine control units for bi-fuel LPI engines.
-The Company developed LPI injectors.
-The Company developed and started mass production of low-cost control units.
-The Company developed engine control units for Hyundai's Nu engines.
-The Company developed engine control units, battery management systems, motor control units, hybrid control units and air fuel module systems for the Hyundai Avante HG Hybrid.
-The Company developed fuel cell hybrid control units, stack voltage monitors and power disconnect units for fuel-cell vehicles.
-The Company developed EGR glow plug units.
-The Company developed control units for 4WD couplings.
-The Company developed hydraulic sensors for 4WD couplings.
-The Company developed purge control solenoid valves (KEV1).
-The Company developed multi-purpose actuators.
-The Company developed non-contact electronic throttle modules.
-The Company developed variable power solenoids (K26).
-The Company developed and started mass production of air fuel module systems for the Hyundai's Theta2 gasoline direct injection engines.
FY2008
-The Company developed and started mass production of electronic throttle controls.
-The Company developed air fuel module systems for Hyundai's Tau engines.
-The Company developed position switches for 6-speed transmissions.
-The Company developed and started mass production of 6-speed transmission control units.
-The Company developed low-noise injectors.