Mando Corporation Business Report FY2010

Business Highlights

Highlights in FY2010 (ended Dec. 2010)

Financial Overview (Non-consolidated)

(in millions of won)
- FY2010 FY2009 Rate of change
Sales  2,109,632 1,512,520 39.5%
Operating income  87,635 68,588 27.8%
Net income  191,310 107,413 78.1%

Sales by Business Division (Non-consolidated)

(in millions of won)
- FY2010 FY2009 Rate of
Sales % Sales %
Brake 1,032,193 48.9% 755,268 49.9% 36.7%
Steering 709,375 33.6% 485,136 32.1% 46.2%
Suspension 321,018 15.2% 242,402 16.0% 32.4%
Others 47,047 2.2% 29,713 2.0% 58.3%
Total 2,109,632 100.0% 1,512,520 100.0% 39.5%


The Company won a contract from BMW to supply brake calipers. It will start supplying them in 2013, expecting to generate 210 billion won in sales from this agreement. The Company has been conducting various marketing activities targeting BMW, which include a product exhibition it held at BMW's research and development center in November 2009. (From a press release on Sep. 6, 2010)

-Hyundai / Kia
The Company is supplying regenerative brake systems for the 2011 Sonata Hybrid, which is produced at Hyundai Motor Manufacturing America (HMMA). It also plans to provide the brake systems for the Kia K5 Hybrid and the Hyundai Avante Hybrid. 

Starting in 2012, the Company will supply rack-type electric power steerings for the Hyundai Equus and Genesis.

The Company is supplying mono-tube suspensions for medium-size vehicles produced by Hyundai Motor.  It is also mass producing dual flow dampers for Hyundai’s SUV model.


-Halla Stackpole
In October 2010, Halla Stackpole (Beijing) Automotive Co., Ltd. of China held a ceremony to cerebrate the completion of its new manufacturing facility in Beijing. The facility produces small backing plates for 6-speed automatic transmission and other products. (From a press release on Oct. 28, 2010)

-Mando-Hella Electronics
Mando-Hella Electronics (MHE) held a ceremony to celebrate the completion of its new plant in Songdo, Incheon City, Korea. The facility will produce ECUs for brake, steering, and suspension systems as well as a variety of sensors for Mando. The new plant, which has the production capacity to produce three million ECUs and two million sensors per year, will also manufacture ultrasonic sensors, lasers, and cameras that are major components of driver-assist and automatic parking systems. MHE was established jointly between Mando (Korea) and Hella in November 2008. Since March 2010, it has been producing and supplying the ECUs for MGH60 anti-lock brake systems installed in vehicles produced by Hyundai and Kia. (From a press release on Jun. 30, 2010)

New Company

The Company established a production and sales company in Brazil. The new entity, which is tentatively called Mando Corporation do Brasil Industry of Auto Parts Ltda., will manufacture vehicle parts mainly for Hyundai Motor's new local facility scheduled to be completed in 2012. The subsidiary will be capitalized at 59,527 million won, which will be fully provided by Mando. (From a press release on Aug. 11, 2010)


The Company received the Supplier of the Year Award for 2009 from General Motors of the U.S. The award was given in recognition of the high quality steering system the company has been supplying to GM. This marks the fifth time that Mando has won the award after winning it four years in a row from 2001 through 2004. (From a press release on Mar. 11, 2010)


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 held an opening ceremony at Mando Europe Corporation GmbH located in Frankfurt, Germany. The facility engages in marketing, new technology research and vehicle evaluation activities. (From a press release on Oct. 14, 2010)

The Company established an R&D center in Heihe City, Heilongjiang Province, China. The new facility will conduct research and development activities in the area of automotive electronic technology and advanced driver assistance systems (ADASs) (From a press release on Feb. 4, 2010)

R&D Expenses

(in millions of won)
- FY2010 FY2009 FY2008
Amount 109,450 78,643 74,229
% of sales 5.19% 5.20% 4.71%

Technical Alliances

In September 2010, the Company and Freescale Semiconductor, Inc. will jointly establish Mando Freescale Joint Development Center, Integration Lab. Leveraging Mando's technology on chassis electronics and Freescale's technology in the field of semiconductor design for automotive semiconductors, they will jointly develop semiconductors for chassis systems and other automotive parts. The new facility will be located on the premises of Mando's Electronics Research Center in Bundang, Gyeonggi-do, Korea. (From a press release on Aug. 23, 2010)

The Company and Korea Electronics Technology Institute (KETI) signed a memorandum of understanding to conduct joint development activities on automotive electronics technology. With the aim of developing new products that incorporate Mando's expertise in electronic chassis control technology with KETI's expertise in the field of advanced electronics, the two entities will establish a "Convergence Lab" on the premises of KETI. Areas of their joint-research activities will include technology on components and communications for intelligent cars, technology on systems semiconductors, technology on driveline and electric systems for green vehicles, and technology on improving reliability of electronic components. (From a press release on Apr. 7, 2010)

The Company signed a memorandum of understanding with both the College of Engineering of Seoul National University and the Intelligent Vehicle IT Research Center on the development of the following technologies: sensors to detect vehicle surroundings; signal processing technology; wire and wireless communication systems; and integrated vehicle control systems. (From a press release on Mar. 22, 2010)

R&D Activities

The Company became the first company in Korea to successfully develop the following driver assistance systems on its own: the Smart Parking Assist System (SPAS) and the Smart Cruise Control (SCC) Stop & Go. The SPAS automatically parks vehicles by assessing the parking area with the aid of an ultrasonic sensor. The SCC Stop & Go system detects whether any vehicles are in front of the vehicle by using radar. When it detects vehicles up ahead, it helps the driver maintain a safe distance from them by automatically controlling the engine and brake. Existing cruise control systems in use in Korea operate only when vehicles travel more than 40 kilometers per hour. Mando says its new system can cover speeds ranging from 0 to 180 kilometers. (From a press release on Feb. 11, 2010)

Electronics and Telecommunication Research Institute (ETRI) became the first in Korea to develop a software platform embedded with an electronic control-unit supporting AUTOSAR, which is an onboard vehicle software recognized as the international standard; as well as a development tool called AutoWorks. ETRI engineered these products jointly with Hyundai Motors, Mando Corporation, Daesung Electronic, and other organizations. The AutoWorks is scheduled for launch in 2011. Producing these tools in Korea instead of importing them from overseas is expected to save more than 50 billion won per year in import costs. (From a press release on Jan. 19, 2010)

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 -