Daewon Kangup Co., Ltd. Business Report FY ended Dec. 2014

Financial Overview (Consolidated)

(in million of won)
FY ended
Dec. 31, 2014
FY ended
Dec. 31, 2013
Rate of
change (%)
Sales 1,029,406 1,010,584 1.9 Sales by product (Ratio)
Springs : 856,133 million won (83.2%)
Seats : 114,953 million won (11.2%)
Operating income 37,085 63,809 (41.9) -
Net income 18,423 37,787 (51.2) -


-Daewon Europe Co, Ltd., which is the Company's subsidiary in Lublin, Poland, is supplying automotive springs and stabilizers to General Motors and Volkswagen. Daewon Europe produces and sells leaf springs, coil springs, stabilizers and other components. (From a press release on February 6, 2014)


-In October 2013, the Company announced that the company and AvtoVAZ Agregat, a Russian auto parts supplier, will jointly establish Daewon-AvtoVAZ Agregat Seats LLC in Russia. The joint-venture company will be capitalized at RUB 16.1 million, of which 51.0 percent will be invested by Daewon Kangup. Daewon-AvtoVAZ Agregat Seats is expected to produce seats for 180,000 vehicles per year, starting in 2015. (From a press release, October 11, 2013)
-In September 2014, the Company acquired the remaining 49 percent share in AvtoVAZ Agregat, and turned the joint venture into its wholly owned subsidiary.
-In December 2014, Daewon-AvtoVAZ Agregat Seats LLC adopted a new corporate name, Daewon Spring & Seat LLC.

-The Company established DaeWon Sollers LLC in Russia. The new company will be headquartered in Elabuga, the Republic of Tatarstan, and manufacture and sell seats and seat components. The new company will be capitalized at 3,454 million won, of which 70.0 percent will be provided by Daewon Kangup. (From a press release on May 9, 2008)
-In December 2014, DaeWon Sollers LLC was liquidated.


-In March 2014, the Company announced that it will sell its Juan plant’s land and buildings to a Korean construction company. The company will receive approximately KRW 40 billion for the deal, which is expected to be completed by the end of June 2014. The plant’s building area is 3,865 square meters and land area is 29,411 square meters. (From a press release on March 7, 2014)

Certification / Award

-The Small and Medium Business Administration of Korea has chosen companies including Central, Daedon, Daewon Kangup and Sejong for its Word Class 300 Project, a program to support the growth of 300 highly promising small- and medium-sized businesses in Korea. Three hundred companies selected by the administration will receive financial and other support for various areas including R&D, global expansion plans, human resources development. Support will be provided by 20 organizations including the Korea Trade-Investment Promotion Agency (KOTRA), the Korea Evaluation Institute of Industrial Technology (KEIT), and Korea Finance Corporation (KOFC). (From a press release on May 21, 2014)

R&D Expenditure

(in million of won)
FY ended
Dec. 31, 2014
FY ended
Dec. 31, 2013
FY ended
Dec. 31, 2012
Amount 28,869 24,278 23,211
% of Sales 3.7% 3.0% 3.2%

R&D Structure

-In March 2003, it established a facility research team to conduct R&D of springs.
-In March 1991, it established a seat research center (currently the research is conducted by the design and technology team) to develop new seats
-In November 1986, the Company established a technical center for developing new technologies and products.

R&D Achievements

R&D Projects Results
Side load coil spring The Company developed coil springs for Hyundai Motor and Kia Motors
Ultra high-precision thin plate springs for EV The Company is developing ultra-lightweight seats using magnesium sheets.
Electronically-controlled air suspensions The Company developed electronically-controlled air suspensions

Agreements on Introduction of Technologies

Contract items Period
NHK Spring
Springs 1 year from July 2014
Aluminum clamps for stabilizer bars 7.5 years from February 2011
Valve cotters 3 years from December 2012
Murata Spring
Engine valve springs 3 years from December 2012
Torque converter springs 3 years from December 2013
Leaf springs 2 years from March 2013
Stabilizer bars From March 2007 through the patent expiry date
Air springs 5 years from October 2014

Licensing Agreements

Contract items Term
Stabilizer bars, Torsion bars 5 years from July 2011
Leaf springs, Coil springs 5 years from August 2006
Leaf springs, Coil springs 5 years from August 2006
Toyo Spring
Parabolic springs 8 years from October 2008

Sales (Non-consolidated)

(in million of won)
  FY ended
Dec. 31, 2014
FY ended
Dec. 31, 2013
FY ended
Dec. 31, 2012
Spring Export N.A. 357,388 303,280
Korea N.A. 270,729 269,502
Total 856,133 628,117 572,782
Seat Export N.A. 7,453 14,085
Korea N.A. 113,336 103,590
Total 114,953 120,789 117,676
Others Export N.A. 47,937 41,981
Korea N.A. 4,027 5,083
Total 58,321 51,965 47,065
Total Export N.A. 412,778 359,348
Korea N.A. 388,092 378,177
Total 1,029,406 800,871 737,525

Production Capacity, Produciton Result, Capacity Utilization Rate

(in millions of won)
Business Division FY ended
Dec. 31, 2014
FY ended
Dec. 31, 2013
FY ended
Dec. 31, 2012
Capacity Result CUR Capacity Result CUR Capacity Result CUR
Korea 1,105,799 853,665 77.2% 1,103,116 891,275 80.8% 770,171 668,423 86.8%
Outside Korea 377,400 329,221 87.2% 308,600 282,579 91.6% 275,212 244,014 88.7%
Total 1,483,199 1,182,886 79.8% 1,411,716 1,173,854 83.2% 1,045,383 912,437 87.3%

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