Korea Electric Terminal Co., Ltd. Business Report 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 566,022 482,862 17.2 Sales breakdown (Ratio)
-Automotive connectors :
376,094 million won (66.4%)
-Fuse boxes & junction boxes
16,260 million won (2.9%)
Operating income 52,525 47,133 11.4 -
Net income 43,018 29,907 43.8 -

New Plant

<North Korea>
-In November 2008, the Company established Gyeongwon Industry Co., Ltd. in the Kaesong Industrial Complex.

-The Company announced that it will invest a total of 6 million US dollars to construct a new plant to assemble connectors in the Kaesong Industrial Complex in North Korea. The new plant will be set up on 7,965 square meters of land. It is scheduled to be completed in May, 2008. The Company plans to complete construction in May, 2008, planning to achieve increased cost efficiency through this project. (From a press release on September 3, 2007)


New business

-The Company will launch operations in the field of lead frames for LEDs. It will invest 25 billion won to set up a new facility in Paju City, Gyeonggi-do. The new facility will carry out operations from development up to production. Commercial production is scheduled to begin in September 2009, with a monthly production capacity of 500 million units. The new business is expected to add 40 billion won to the company's annual revenues. (From a press release on July 6, 2009)

Divestiture

-In May 2007, the Company sold off its production facility in Namchon, Incheon.

R&D

R&D Structure

-The Company announced that it will double the development capacity at its R&D center in Incheon in order to develop hybrid products and other components at the facility. The company is ready to invest some 14 billion won in this project. (From a press release on July 2, 2007)

- In July 1997, the Company established its Central Research Center in Incheon City, Korea. In July 2004, it moved this facility to the Songdo Techno Park in the same city.  

R&D Expenditure

(in millions of won)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Amount 25,376 18,477 16,787
% of Sales 4.5% 3.8% 3.7%

Technical Alliances

-In November 2008, the Company and Yazaki Corporation renewed the partnership agreement.

-In February 1998, the Company and Yazaki Corporation signed a comprehensive tie-up agreement to collaborate in the area of production, sales and technology for connectors.


Recent Developments

Products Vehicle model in which the Company's products are used
FY ended Dec. 31, 2013
060 12M PCB assemblies Hyundai's medium-size vehicles
060 22M connectors Hyundai's small-size vehicles
375 2M PCB assemblies Kia's medium-size vehicles
02506010 65P assemblies Hyundai's medium-size vehicles
060 18M PCB assemblies Hyundai's medium-size vehicles
FY ended Dec. 31, 2012
Fuse & relay boxes Hyundai's SUVs
025060110 46P connectors Hyundai's medium-size vehicles
Terminal block assemblies Hyundai's electric vehicles
Rear combination lamp wire harnesses Kia's medium-size vehicles
Head lamp wire harnesses Kia's medium-size vehicles
060 WP 6M rear lamp assemblies Kia's SUVs
FY ended Dec. 31, 2011
Multi fuse 2P Hyundai/Kia's small-size vehicles
GM T300 BFT 1P, 4P GM's small-size vehicles
630 WP 3F connectors GM's small-size vehicles
Stick ignition coil 2M assembies Hyundai/Kia's large-size vehicles
HE PHEV(HEV) PRA Hyundai/Kia's hybrid vehicles
HCU, BMS Hyundai's commercial vehicles
3 pin fork terminals Hyundai's medium-size vehicles
FY ended Dec. 31, 2010
HE/KE power relay assemblies Hyundai/Kia's electric vehicles
GRE/GFE BDU GM's medium-size vehicles
060 10P connectors Hyundai/Kia's all models
120 cavity plug connectors Hyundai/Kia's all models
025040 18M PCB connectors Hyundai/Kia's medium-size vehicles
DT 2P connectors Hyundai/Kia's medium-size vehicles
064 6M PCB connectors GM's all models
025 12P connectors Hyundai's small- and medium-size vehicles
Headlamp connectors Hyundai's electric vehicles

Investment Activities

Investment

-In August 2013, Gyeongwon Electronics Co., Ltd., a subsidiary of the Company, has established a new plant to produce automotive connectors at the Pyeongdong General Complex in Gwangju City. The facility has a building area of 3,496 square meters on 6,612 square meters of land. (From a press release, August 29, 2013)

-In FY ended Dec. 31, 2008, the Company expanded its plant in Gwangju, newly installing a 30-ton stamping machine and a 40-ton stamping machine.

-In September 2007, the Company announced that it will invest a total of 6 million US dollars to construct a new plant to assemble connectors in the Gaesung Industrial Complex in North Korea. The new plant will be set up on 7,965 square meters of land. It is scheduled to be completed in May, 2008. The Company plans to complete construction in May 2008, planning to achieve increased cost efficiency through this project. (From a press release on September 3, 2007)