Mando Corporation_Business Report FY2009

Business Highlights

Highlights in FY2009 (ended Dec. 2009)

Financial Overview

(in millions of won)
- FY2009 FY2008 Rate of change
Sales 1,512,520 1,574,800 (4.0%)
Operating income 68,588 24,829 176.2%
Net income 107,413 41,272 160.3%

Sales by Business Division

(in millions of won)
- FY2009 FY2008 Rate of
Sales % Sales %
Brake 755,268 49.9% 723,831 45.9% 4.3%
Steering 485,136 32.1% 574,057 36.5% (15.5%)
Suspension 242,402 16.0% 229,659 14.6% 5.5%
Others 29,713 2.0% 47,253 3.0% (37.1%)
Total 1,512,520 100.0% 1,574,800 100.0% (4.0%)


The Company has been awarded program business from General Motors to supply rack assist type electric power steering systems (EPSs). The deal is expected to be worth 400 billion won. In total, the amount of program business the company has won from non-Korean automakers in 2009 has already surpassed 1 billion US dollars and is expected to ultimately reach 1.2 billion US dollars by the end of the year. Since the beginning of this year, the company has been increasing its revenue from European and North American automakers. (From a press release on Nov. 22, 2009)

The Company will start supplying its driving safety system to General Motors in July 2009. Over the next five years, it will deliver 6 million sets of Anti-lock Brake Systems (ABSs) and Electronic Stability Control systems (ESCs) to GM. (From a press release on May 21, 2009)

-PSA Peugeot Citroen
The Company has been awarded a contract to supply caliper brakes to the Peugeot Citroen Group (PSA) over the period of five years starting in 2012. The deal, which marks its first business with a European carmaker, is worth some 120 billion won in sales. Building on the program with PSA, it aims to deal with other European automakers including BMW and Renault. (From a press release on Jul. 30, 2009)


-Halla Stackpole Co., Ltd.
Halla Stackpole, which is a subsidiary of Mando Corporation, held a ceremony to celebrate the completion of its new plant in Ochang, Chungcheongbuk-do. The company also began producing sintered products for use in 6-speed automatic transmissions, supplying them to both GM Daewoo and Shanghai GM. (From a press release on Oct. 22, 2009)

-Mando-Hella Electronics Corp.
Mando-Hella Electronics Corp. (based in Korea) announced that its new plant in Songdo, Incheon City has been completed. In March 2010, the plant will start mass production of ECUs, yaw rate sensors, and gravity sensors for anti-lock brake systems (ABSs) and electronic stability control systems (ESCs). These products will be featured on the Kia Soul. Mando-Hella Electronics was established jointly by Mando Corporation of Korea and Hella KGaA Hueck& Co. of Germany. (From a press release on Aug. 31, 2009)


The Company has produced a combined total of more than 10 million anti-lock brake systems (ABSs) and electronic stability control (ESC) systems. It is aiming to increase the yearly production volume of these products to 5 million units by 2013. (From a press release on Sep. 21, 2009)

The Company has launched commercial production of high-power, motor-driven power steering systems (MDPSs) at its plant in Wonju, Korea. These systems are being equipped on the Hyundai Tucson ix compact SUVs. (From a press release on Aug. 27, 2009)

New Business

The Company plans to enter into the new business fields including the motor market, intending to invest 47,503 million won in the project from 2010 through 2011.


R&D Structure

Facility Location Area of development
Central Research Institute
Giheung System
Research Center
- Countermeasure for hybrid technology
- Development of integrated safety system
- Development of driver support system
- Development of key electronics technology
Pyeongtaek Testing &Evaluation Center Pyeongtaek,
- Development of vehicle and rig test/evaluation technology
- Development of materials
- NVH (Noise & Vibration, Harshness)
- Manufacturing techniques

-The Company established Mando (Beijing) Automotive Components R&D Center Co.,Ltd. in Beijing, China in June, 2006. It also conducts development activities at Mando R&D Shanghai Branch in Shanghai, China.

- The Company is planning to establish a new R&D center in Frankfurt, Germany in the second half of 2010. Investment in this project is expected to reach 4,370 million won.

R&D Expenses

(in millions of won)
- FY2009 FY2008 FY2007
Amount 78,643 74,229 64,534
% of sales 5.20% 4.71% 3.85%

Technical Alliances

The Company and the Korea Transportation Safety Authority have signed a memorandum of understanding regarding R&D activities on safety systems. The initial agreement covers a period of three years (running through 2012); and then beginning in 2013, the agreement will be renewed every five years after that. Based on the understanding reached, Mando will be given the right to use the test course owned by the Korea Transportation Safety Authority. Up until now, the company has been carrying out performance testing outside Korea, namely in Sweden, China, the U.S.A., and New Zealand. Based on collaboration with the Korea Transportation Safety Authority, the company will be able to conduct testing of ABSs, ESC systems, lane keep assist systems, adaptive cruise control systems, and advanced driver assistance systems (ADASs) also in Korea. (From a press release on Dec. 3 ,2009)

The Company and Liuzhou Wuling Motors United Development Co., Ltd., a company based in China, signed a memorandum of understanding (MOU) for forming a cooperative partnership. Liuzhou Wuling Motors is supplying automotive modules to SAIC-GM-Wuling Automobile, a company under the SAIC Group. According to the subject MOU, Mando on one hand is planning to offer Liushou Wuling Motors technology on chassis modules; and on the other hand, Mando has intentions to supply SAIC-GM-Wuling Automobile brake, steering, and suspension parts for the new GP50 passenger vehicle project, based on cooperation forthcoming from Liuzhou Wuling Motors. (From a press release on Jun. 18, 2009)

The Company and Faravari & Sakht Co. (F&S) of Iran have signed an agreement under which Mando will transfer its suspension technology to the Iranian company, becoming the first Korean manufacturer to license-out its technology to a Middle Eastern country. Mando is expected to receive more than 500,000 US dollars in technical fees for the contract, which will last up to a maximum of nine years. In addition, Mando will supply F&S with shock absorbers worth 90 million US dollars in total over the next nine years. F&S is owned by the EZAM Automotive Parts Group, Iran's largest auto parts manufacturer. (From a press release on Jan. 4, 2009)

R&D Activities

Development projects completed in FY2009
「MGH-60」ABS/ESC systems Jun. 2007 -
Jun. 2009
「MAS-25E、EElectric power steerings Sep. 2007 -
Oct. 2009
「MAS-25L、EElectric power steerings May 2008 -
Aug. 2009
「MAS-35、EElectric power steerings Jun. 2008 -
Jul. 2009
Integrated chassis control systems
(This project is based on a national policy)
Apr. 2005 -
Sep. 2009
Yaw rate & G sensors May 2006 -
Mar. 2009

Hydraulic power steering systems supporting higher output and pressure

Apr. 2008 -
Sep. 2009
Induction motors Mar. 2009 -
Aug. 2009
Self-levelizers Sep. 2005 -
Jun. 2009
Dual flow dampers Oct. 2007 -
Dec. 2009
Multi valves Feb. 2008 -
May 2009
Hybrid calipers Jan. 2008 -
Apr. 2009
Tie rod type boosters Jan. 2008 -
Nov. 2009

Investment Activities

Investment Plans

(in millions of won)
Investment project Budgeted
Period of investment
Establishing a new plant in Brazil 32,048 Second half of 2010
Establishing a new plant in Central Europe 40,111 2011
Establishing a new plant in inland China 5,341 2011
Total 77,500 -