Mando Corporation Business Report FY2011

Business Highlights

Highlights in FY2011 (ended Dec. 2011)

Financial Overview (Consolidated)

(in millions of won)
FY2011 FY2010 Rate of
Sales 4,560,126 3,639,639 25.3% Sales by customer
-Hyundai-Kia Group : 56%
-GM Group : 20%
-Chinese automakers : 3%
-Ssangyong Motor : 1%
-Others : 20%
Operating income 291,324 275,731 5.7% -
Net income 225,060 205,501 9.5% -


The Company was awarded a program business from General Motors of the U.S. to supply brake calipers and electric power steering systems (EPSs). Mando will start supplying them in 2014, expecting to generate 520 million USD in sales from this agreement. The EPSs will be installed in passenger vehicles with an engine displacement of 2.0 liters or more. (From a press release on November 29, 2011)

In February 2011, Mando India was awarded a program to supply master cylinders and brake boosters for the CN100 manufactured by GM India.

The Company will supply its electric power steering systems for the Chevrolet Cruze, starting in 2012, as well as for pickup trucks, starting in 2014. 

The Company was awarded a contract to supply suspension products to Nissan. The business, which will start in 2014, is expected to generate 41 billion won in sales. (From a press release on June 20, 2011)


The Company won a contract from Volkswagen to supply brake calipers. Starting in 2015, Mando will supply them to the vehicles produced in Europe and China, expecting to generate 210 billion won in sales from this agreement. (From a press release on April 4, 2011)

In 2011, the Company's regenerative braking systems were installed on the Hyundai Sonata Hybrid and the Kia K5 Hybrid.

In 2011, the Company started supplying smart cruise control systems to the Hyundai Grandeur HG.

The Company is supplying its dual flow dampers for the Hyundai Sonata and the Kia K5 sold in North America and China, as well as the Kia Sorento sold in North America.

The Company will supply its electric power steering systems for the Hyundai Equus, starting in 2012; the Hyundai Santa Fe, starting in 2013; and the Hyundai Genesis Coupe, starting in 2014. 

-Renault Samsung
The Company is supplying its dual flow dampers for the SM7.

Establishment of new companies

The Company established Mando Corporation Poland sp. z o. o., a wholly owned subsidiary in Poland. The new company, which is capitalized at 124.3 billion won, will set up an auto parts factory either in Gliwice or Walbrzych. The facility is due to come on stream in 2013. (From a press release on June 20, 2011)

KYB Co., Ltd., Japan, announced its joint venture project in Brazil with Mando Corp., a Korean automotive parts supplier.  It aims to strengthen its operations in Brazil through pursuing synergy effects in the automotive shock absorber business.  It will transfer 50% of shares of KYB do Brasil Fabricante de Autopecas Ltda. (KBFA), its 100% subsidiary in Brazil, to Mando Corp. to establish a joint venture company, KYB-Mando do Brasil Fabricante de Autopecas S.A., in State of Paraná on May 31.  The joint venture will be capitalized at R$ 24.4 million (approx. 1.28 billion yen).  The parent companies, which both have an automotive shock absorber business, have decided that sharing their management resources and know-how in the growth-expected Brazilian market should generate synergy effects to help expand their businesses. (From an article in the Nikkan Jidosha Shimbun on April 25, 2011)

The Company's subsidiary, Mando-Hella Electronics Corp., and Suzhou Science & Technology Town (SSTT) of China signed a memorandum of understanding for the establishment of a new company. The company will set up Mando-Hella Electronics (Suzhou) Co., Ltd. (MHES) in Suzhou city, Jiangsu Province, China at the end of July 2011. With the total invest amount of approximately 30 billion won, MHES will produce ECUs and driver assistance system (DAS) sensors, starting in the beginning of 2013. The new entity aims to generate 185 billion won in sales in 2017. (From a press release on July 25, 2011)

The Company and Geely Automobile will jointly establish a new company, which is called Mando (Ningbo) Automotive Parts Co., Ltd., in China. The 85 million USD venture will be 65.0 percent owned by Mando, with Geely holding the remaining stake. The joint venture will set up new manufacturing facilities in Ningbo and Taizhou, both in Zhejiang province. Starting in January 2012, the two plants will produce brake corner modules, suspension assemblies and other products. (From a press release on January 11, 2011)

Brose International GmbH of Germany and Mando Corporation of Korea agreed to form a 50:50 joint venture called Mando-Brose Corporation in Korea. The joint venture will develop and manufacture steering motors, supplying them to the local market. The new facility, which will be located in Incheon, is scheduled to start mass production in the first half of 2013. After production ramp-up, the Mando-Brose Corporation anticipates an annual business volume of 150 million euros. (From a press release on February 1, 2011)


The Company was awarded the Chrysler Supplier Award for 2011. Mando has been supplying its brake and steering products to Chrysler since 2004. (From a press release on July 12, 2011)

Business plan

The Company announced its business results for the year ending December 2011. The company generated consolidated sales of 4,600 billion won, which was a 25 percent increase from the previous year. In 2012, it targets generating sales of 5,300 billion won, which will be a year-over-year increase of 16 percent. Investment during the same year is expected to reach 520 billion won, as the company plans to reinforce its overseas business. (From a press release on March 16, 2012)


R&D Structure

Facility Location
Giheung Central Research Institute Yong-in,
Pyeongtaek Central Research Institute Pyeongtaek,
Bundang Electronic Research Center Seongnam,

Research centers outside Korea
-U.S. (Detroit, Michigan)
-China (Beijing)
-India (Haryana)
-Germany (Frankfurt)

Winter Test Center
U.S. (Sault Ste. Marie, Michigan)
China (Heihe, Heilongjiang province)
Sweden (Arjeplog)
New Zealand (Wanaka)

R&D Expenditure

(in millions of won)
FY2011 FY2010 FY2009
Amount 151,845 114,643 78,643
% of sales 3.33% 3.15% 5.20%

R&D Activities

The Company's recent achievements include development of smart cruise control (SCC) systems, smart parking assist systems (SPASs) and Lane Keeping Assist Systems (LKASs).  

Investment Activities

Capital Expenditure (FY2011)

(in millions of won)
Business division Investment programs Amount
Brake Revamping and expanding ABS production lines 35,144
Revamping and expanding caliper production lines 17,757
Revamping and expanding master cylinder and booster production lines 9,841
Others 20,637
Subtotal 83,379
Steering Revamping rack & pinion power steering production lines 7,465
Adding new production line to produce rack-type electric power steering systems 10,368
Revamping and expanding column-type electric power steering production line 13,618
Others 16,448
Subtotal 47,899
Suspenison Revamping and expanding column-type electric power steering production line 1,718
Revamping shock absorber production line 1,723
Others 4,615
Subtotal 8,056
Others 85,087
Total 224,422

The Company held a groundbreaking ceremony for its new plant in Walbrzych, Poland. The plant will be established on 130,000 square meters of land with an investment of 80 million euros (approximately 124 billion won). It is scheduled to be completed by July 2012 to manufacture brake, suspension and steering systems as well as electronic control devices. These products will be supplied to the European facilities of General Motors, Volkswagen, Peugeot, Hyundai-Kia and other automakers. (From a press release on November 8, 2011)

The Company will set up a new manufacturing facility in Meriwether County, Georgia, U.S. The facility will produce electronic control products including ABSs, ESC systems and EPSs. The Georgia plant is expected to have the capacity to produce 2.7 million units annually by 2016. Mando will supply these products to the North American facilities of automakers such as Hyundai Kia, GM, and Chrysler. (From a press release on September 22, 2011)

Mando-Brose Corporation signed an investment agreement with the city of Incheon. The company will invest 190 billion won to establish production and R&D facilities for electric motors. Construction is scheduled to start in August 2011 and be completed in April 2012. Mando-Brose is a 50:50 joint venture between Mando of Korea and Brose of Germany. (From a press release on July 1, 2011)