Hyundai WIA Corporation (Formerly WIA Corporation) Business Report FY ended Dec. 2017
Financial Overview (Consolidated) |
(in millions of won) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Rate of Change (%) |
Remarks | |
| Sales | 7,487,392 | 7,589,447 | (1.3) | -Sales at the automotive division totaled 6,432,774 million won, which made up 85% of the overall sales. |
| Operating income | 16,718 | 262,732 | (93.6) | - |
| Net income | (63,004) | 130,726 | (148.2) | - |
Recent Development in Korea
Hyundai WIA IHI Turbo Co., Ltd., a JV with IHI, becomes wholly owned subsidiary
-The Company announced that it will acquire the remaining 49.0% stake in Hyundai WIA IHI Turbo Co., Ltd. (HWIT) and convert it into its wholly owned subsidiary. HWIT, located in Seosan, Chungcheongnam-Do, Korea currently produces turbochargers for approximately 200,000 vehicles per year. Hyundai WIA is aiming to increase the subsidiary's annual turbocharger capacity to over 1.2 million units by 2020. Hyundai WIA and IHI will continue their technical collaboration after the transaction. (From a press release on May 12, 2017)
Recent Development Outside Korea
-A new plant in Mexico was completed in March 2016. The plant began producing engines and CVJs for customers in Mexico and North America. (From the Company's Annual Report for 2016)
Manufacturing
-The Company successfully developed an active transfer case (ATCs) for the first time as a Korean manufacturer and the company's second plant in Changwon has begun the mass production. The newly-developed ATC will be used for the Stinger, a premium sedan of Kia Motors Corporation. Hyundai WIA anticipates producing 40,000 ATCs and generating the sales of Korean won (KRW) 20 billion a year. (From some releases on May 29, 2017)
R&D Structure
| Facility | Location |
| Korea | |
| Automotive Parts Research Institute | Uiwang, Gyeonggi-do |
| Hwaseong Drivetrain R&D Center | Hwaseong, Gyeonggi-do |
| USA | |
| Hyundai WIA America Technical Center | Farmington Hills, Michigan |
R&D Expenditure (Consolidated) |
(in millions of won) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| Amount | 66,146 | 68,483 | 67,345 |
| % of Sales | 0.88% | 0.90% | 0.85% |
Investment in Korea
-The Company announced that it will establish an engine plant in the Seosan Auto Valley in Chungcheongnam-Do. The Company will invest KRW 265.1 billion in this project, expecting that demand for diesel engines will grow in the medium- to long-terms. (From a press release on February 19, 2016)
Recent Capital Investment Projects/Automotive Parts
|
(in billions of won) |
| Amount invested (FY ended Dec. 31, 2017) |
Planned amount of investment (2018) |
Planned amount of investment (2019) |
Total | Purpose of investment |
|
| Automotive parts | 165.7 | 153.3 | 667.0 | 385.7 | -Preparing production lines to manufacture components for new vehicle models and developing new technologies |