Sejong Industrial Co., Ltd. Business Report up until FY ended Dec. 2013
Business Highlights
Highlights in recent years
-In July 2013, the Company established Sichuan Sejong Auto Parts Co., Ltd., a muffler production company, in Sichuan Province, China. The new company is capitalized at 1.67 million won, of which 40 percent was provided by SEWOOM, 30 percent by Beijing Sejong Auto Parts, and the remaining 30 percent by Yancheng Sejong Auto Parts. (From a press release, July 4, 2013)
-In July 2013, the Company and the Chongqing Qinchuan Industry Group jointly established Chongqing Qinchuan Sejong Auto Parts Co. Ltd., a muffler production company, in Chongqing City, China. The new joint venture is capitalized at 2.22 million won, of which 10 percent was provided by Sejong, 39 percent by Taicang Sejong Auto Part, and 51 percent by Chongqing Qinchuan Sejong Auto Parts. (From a press release, July 2, 2013)
-Yancheng Sejong Auto Parts' new plant started operations in October 2011.
-Beijing Sejong Auto Parts established its second plant in June 2011.
-In April 2011, the Company will establish Taicang Sejong Auto Parts Co., Ltd., a joint-venture company to manufacture and sell automotive parts in China. The new entity will be capitalized at 852 million won, of which 50 percent will be provided by Sejong's subsidiary Beijing Sejong Auto Parts Co., Ltd., while the remaining 50 percent will be invested by a Chinese company.
<USA>
-Sejong America, Inc. established Sejong Georgia, LLC in Georgia, U.S.A. to manufacture auto parts for Kia's transplant in Georgia. The new subsidiary is capitalized at 974 million won, which was fully funded by Sejong America. (From a press release on April 10, 2008)
-The Company will invest 27.8 million USD to establish Sejong Georgia LLC. on the former factory-site of Federal Mogul in LaGrange, Georgia, U.S.A. The new plant will begin producing automotive muffler and exhaust systems in Oct. 2009 and supply them to Kia Motors' plant in Georgia. The Georgia facility will become Sejong's second plant in North America, following the Sejong Alabama plant, which is supplying its parts to Hyundai Motor. (From a press release on November 20, 2007)
-The Company acquired the remaining 50 percent equity stake that ArvinMeritor, its joint venture partner, had in ArvinMeritor Sejong. Located in Alabama U.S.A, ArvinMeritor Sejong supplies exhaust systems to Hyundai Motor Manufacturing Alabama (HMMA) and other companies. Having acquired 100% of the equity in the joint-venture company, Seijong changed the name of the Alabama-based company to Sejong Alabama LLC. (From a press release on Mar. 20, 2007)
<Russia>
-Sejong Rus started mass production in January 2011.
-The Company established a subsidiary, Sejong Rus LLC, in Russia in order to supply auto parts to Hyundai Motor's new assembly plant in the country, which is scheduled to launch production in 2010. (From a press release on July 4, 2008)
<Czech Republic>
-The Company announced it had established Sejong Czech S.R.O to supply auto parts to the local facilities of Hyundai Motor and Kia Motors. It will invest 3 million dollars in the new subsidiary. (Based on a press release by the company on September 12, 2006)
<Slovakia>
-The Company announced the establishment of Sejong Slovakia S.R.O in Slovakia. Sejong Slovakia, fully owned by the Company, will supply principally to Kia Motors. (Based on a press release by the company on November 16, 2006)
Financial Overview (Consolidated) |
(in millions of won) |
FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | Rate of Change (%) |
Remarks | |
Sales | 1,093,718 | 1,017,676 | 7.5 | Sales by product (FY ended Dec. 31, 2013) Mufflers & Catalytic converters : 1,073,985 million won (98.2%) Body parts : 3,978 million won (0.4%) |
Operating income | 57,470 | 52,282 | 9.9 | - |
Net income | 46,464 | 45,230 | 2.7 | - |
Subsidiaries
<China>-In July 2013, the Company established Sichuan Sejong Auto Parts Co., Ltd., a muffler production company, in Sichuan Province, China. The new company is capitalized at 1.67 million won, of which 40 percent was provided by SEWOOM, 30 percent by Beijing Sejong Auto Parts, and the remaining 30 percent by Yancheng Sejong Auto Parts. (From a press release, July 4, 2013)
-In July 2013, the Company and the Chongqing Qinchuan Industry Group jointly established Chongqing Qinchuan Sejong Auto Parts Co. Ltd., a muffler production company, in Chongqing City, China. The new joint venture is capitalized at 2.22 million won, of which 10 percent was provided by Sejong, 39 percent by Taicang Sejong Auto Part, and 51 percent by Chongqing Qinchuan Sejong Auto Parts. (From a press release, July 2, 2013)
-Yancheng Sejong Auto Parts' new plant started operations in October 2011.
-Beijing Sejong Auto Parts established its second plant in June 2011.
-In April 2011, the Company will establish Taicang Sejong Auto Parts Co., Ltd., a joint-venture company to manufacture and sell automotive parts in China. The new entity will be capitalized at 852 million won, of which 50 percent will be provided by Sejong's subsidiary Beijing Sejong Auto Parts Co., Ltd., while the remaining 50 percent will be invested by a Chinese company.
<USA>
-Sejong America, Inc. established Sejong Georgia, LLC in Georgia, U.S.A. to manufacture auto parts for Kia's transplant in Georgia. The new subsidiary is capitalized at 974 million won, which was fully funded by Sejong America. (From a press release on April 10, 2008)
-The Company will invest 27.8 million USD to establish Sejong Georgia LLC. on the former factory-site of Federal Mogul in LaGrange, Georgia, U.S.A. The new plant will begin producing automotive muffler and exhaust systems in Oct. 2009 and supply them to Kia Motors' plant in Georgia. The Georgia facility will become Sejong's second plant in North America, following the Sejong Alabama plant, which is supplying its parts to Hyundai Motor. (From a press release on November 20, 2007)
-The Company acquired the remaining 50 percent equity stake that ArvinMeritor, its joint venture partner, had in ArvinMeritor Sejong. Located in Alabama U.S.A, ArvinMeritor Sejong supplies exhaust systems to Hyundai Motor Manufacturing Alabama (HMMA) and other companies. Having acquired 100% of the equity in the joint-venture company, Seijong changed the name of the Alabama-based company to Sejong Alabama LLC. (From a press release on Mar. 20, 2007)
<Russia>
-Sejong Rus started mass production in January 2011.
-The Company established a subsidiary, Sejong Rus LLC, in Russia in order to supply auto parts to Hyundai Motor's new assembly plant in the country, which is scheduled to launch production in 2010. (From a press release on July 4, 2008)
<Czech Republic>
-The Company announced it had established Sejong Czech S.R.O to supply auto parts to the local facilities of Hyundai Motor and Kia Motors. It will invest 3 million dollars in the new subsidiary. (Based on a press release by the company on September 12, 2006)
<Slovakia>
-The Company announced the establishment of Sejong Slovakia S.R.O in Slovakia. Sejong Slovakia, fully owned by the Company, will supply principally to Kia Motors. (Based on a press release by the company on November 16, 2006)
R&D
R&D Structure
-In December 2013, the Company established Shanghai SJG R&D Center, a research base in China. The new facility is capitalized at KRW 173 million, which was fully invested by Sejong (China) Auto Parts Technology R&D Co., Ltd. (From a press release on December 11, 2013)-In April 2012, the Company established Sejong (China) Auto Parts Technology R&D Co., Ltd. in Taicang, Jiangsu, China, wholly investing all of the 3,412 million won in capital. (From an April 25, 2012 press release)
-The Company conducts research and development activities also at its Sejong USA R&D Center in Detroit, Michigan, U.S.A.
-In February 2009, the Company established the Production Technology Research Center.
-In July 2008, the Company established an R&D center in Suwon City, Gyeonggi-do.
-In June 1995, the Company established an R&D center in Ulsan City.
R&D Expenditure |
(in millions of won) |
FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | |
Amount | 26,593 | 26,645 | 24,280 |
% of Sales | 5.7% | 5.8% | 5.6% |
R&D Activities
-Korea's Ministry of Knowledge Economy announced that it will invest over the next year or two approximately 155 billion won in several growth areas. In the area of LED technology, Hyundai Mobis will collaborate with Samsung LED and other companies to develop LED headlamps. Development of green cars will be led by Daesung Electric Co., Ltd.; Hyundai Mobis; Korea Electric Terminal Co., Ltd.; and Daewon Kangup Co., Ltd., which will work on the development and commercialization of major components. Application studies on renewable energy will be carried out by Halla Climate Control Corp.; Inzi Controls Co., Ltd.; Sejong Industrial Co., Ltd.; and the Namyang Research Center of Hyundai Motor. Hyundai Motor, Hyundai Autonet, Samsung Electric will develop semiconductors for next-generation vehicles. These projects are planned to be completed by the middle of 2010. (From a press release on July 8, 2009)-Ulsan City announced that the city will promote development of NOx sensors for clean diesel engines that meet the Euro 6 emissions standards. The project, which will be led by Sejong Industrial Co., Ltd., is planned to be completed by 2012. Investment in this project is estimated to reach approximately 3,132 million won. (From a press release on June 5, 2009)
-The Ministry of Knowledge Economy of Korea announced that it has implemented eight strategic tasks in the area of renewable energy. One strategy is to commercialize polymer electrolyte fuel cells for transportation vehicles. The project will be lead by Hyundai Motor, with several other companies including Daewon Kangup Co., Ltd., Halla Climate Control Corp., and Sejong Industrial Co., Ltd. joining to develop this technology. Over the next three years, the ministry will invest 14.9 billion won and the private sector will invest 13.6 billion won in the project. (From a press release on December 9, 2008)
R&D Achievements in Recent Years
Area of development (Development code) |
Development period |
Status |
Developed exhaust systems -Hyundai/Sonata (NF) -Hyundai/Tucson (JM) -Hyundai/Grandeur (TG) -Hyundai/Santa Fe (CM) -Hyundai/Libero (HR) |
Mar. 2003 - Dec. 2007 |
Mass production already began |
Developed exhaust systems -Hyundai/Genesis (BH) -Hyundai/Equus (VI) -Hyundai/Genesis Coupe (BK) -Hyundai/Avante (HD) -Hyundai/i30 (FD) |
Mar. 2006 - Mar. 2009 |
Mass production already began |
Developed exhaust systems -Hyundai/Successor model to Tucson (LM) -Hyundai/Successor model to New Sonata (YF) -Kia/Semi large sedans (VG) -Hyundai/Santa Fe Facelift (CM F/L) -Hyundai/Successor model to Avante HD (MD) -Hyundai/Strategic vehicles for the European market (VF) -Hyundai (U.S.A)/Successor model to Sorento (XMA) -Hyundai/Successor model to Grandeur TG (HG) -Kia/Successor model to Opirus (CH) -Kia/Minivan (YN) -Hyundai(India)/Small car (HA) |
From |
Currently under development |
Exhaust system development promotion project -G7 project : Developed exhaust gas purification catalysts and purifying devices, which meet Euro lV and Euro V emission standards |
Sep. 2003 - Aug. 2006 |
Development project was completed |
Exhaust system development promotion project -Plasma : Developed canning for plasma reaction |
Mar. 2004 - Sep. 2005 |
Development project was completed |
Exhaust system development promotion project -Eco-Star : Developed exhaust gas after-treatment devices for heavy-duty diesel engine vehicles. These technologies are compliant to Euro V standard. |
Dec. 2004 - May 2011 |
Development project was completed |
Developing technology to predict product life of automotive exhaust manifolds, based on studying the levels of thermal fatigue occurring. (Development activities are carried out at Ulsan Industrial Complex Development Cluster) | Aug. 2007 - Aug. 2008 |
Development project was completed |
Developing glucose sensors with electrodes made of copper, nickel, and gold | Jun. 2008 - May 2009 |
Development project was completed |
Developing hydrogen gas leak detectors to detect gas leakage in fuel cell vehicles | Jul. 2006 - Nov. 2009 |
Development project was completed |
Developed silencers and flexible tubes for fuel cell vehicles | Nov. 2006 - Oct. 2009 |
The first phase of the project was completed |
Developing silencers and flexible tubes for fuel cell vehicles | Nov. 2009 - Oct. 2011 |
The secpnd phase of the project was completed |
Developing technology to predict product life of automotive exhaust manifolds | Jul. 2007 - Jun. 2009 |
Development project was completed |
Developed technology to optimize the mounting position of the urea injection device, which will enhance the exhaust purification performance of the selective catalytic reduction system | Oct. 2008 - Mar. 2009 |
Development project was completed |
Developing hydrogen supply system based on the heat and mass transfer characteristics of the chemical element | Dec. 2008 - Sep. 2011 |
The first phase of the project was completed |
Developing hydrogen supply system based on the heat and mass transfer characteristics of the chemical element | Oct. 2011 - Sep. 2013 |
The second phase of the project was completed |
Developing variable valves to enhance engine performance and reduce noise, vibration, and harshness | Apr. 2009 - Mar. 2011 |
Development project was completed |
Developing non fusion joining technology for stainless steel | Jul. 2009 - Jun. 2010 |
Development project was completed |
Developing regenerated energy application systems to improve vehicle fuel efficiency | Jul. 2009 - Aug. 2010 |
Development project was completed |
Developing low-cost variable valves | Oct. 2009 - Oct. 2010 |
Development project was completed |
Developing low-cost hydrogen supply device for fuel cell vehicles | Oct. 2009 - Apr. 2012 |
Development project was completed |
Developing sensor systems for exhaust aftertreatment technology | Dec. 2009 - Apr. 2012 |
Development project was completed |
Developing exhaust gas recirculation systems and exhaust gas purification systems for global automakers | Dec. 2009 - Oct. 2011 |
Development project was completed |
Developing blower motors for rechargeable battery cooling |
Apr. 2010 - Mar. 2015 |
Currently under development |
Developing 6 degrees of freedom (DOF) load cells for exhaust systems |
Aug. 2010 - Dec. 2012 |
Development project was completed |
Study on electric pulse forming of tailor welded blanks (TWBs) aimed at developing lightweight and high-strength resonators | Aug. 2010 - Jul. 2013 |
Currently under development |
Developing hydrogen sensors | Jul. 2010 - Apr. 2013 |
Development project was completed |
Developing catalytic exhaust purification devices | Dec. 2011 - Nov. 2013 |
Currently under development |
Developing engine power generating systems for range-extended EVs | Sep. 2011 - Aug. 2016 |
Currently under development |
Developing system control units for hybrid power packs and power converters |
Jun. 2012 - Apr. 2015 |
Currently under development |
Studying thermoelectric generation system to develop automotive exhaust heat recovery systems |
Aug. 2012 - Jul. 2016 |
Currently under development |
Developing turbochargers integrated with stainless exhaust manifolds | Nov. 2012 - Nov. 2013 |
Currently under development |
Developing injection modules for urea SCR systems used on clean diesel passenger vehicles |
Sep. 2012 - Aug. 2014 |
Currently under development |
Developing converters that meet the Euro6 standards |
Sep. 2012 - Mar. 2014 |
Currently under development |
Developing elemental technologies for high-performance green engines |
Apr. 2013 - Mar. 2016 |
Currently under development |
Developing pumps for fuel-cell systems |
Sep. 2013 - Aug. 2015 |
Currently under development |
Technology Licensing Agreement
Company (Country) |
Contract | Vehicle model (Development code) |
Period |
Sharda Motor Ind. Ltd. (India) |
Licensing technology to manufacture and design mufflers and converters | Hyundai India Atos 1.1 (MXI) |
2002 - 2012 |
Sharda Motor Ind. Ltd. (India) |
Licensing technology to manufacture and design exhaust systems | Hyundai India Verna (MCI) |
2005 - 2012 |
Sharda Motor Ind. Ltd. (India) |
Licensing technology to manufacture and design mufflers and converters | Hyundai India Getz (TBI) |
2003 - 2010 |
Sharda Motor Ind. Ltd. (India) |
Licensing technology to manufacture and design exhaust assemblies and catalyst converters | Hyundai India Getz facelift model (TBI FL) |
2006 - 2016 |
Sharda Motor Ind. Ltd. (India) |
Licensing technology to manufacture and design mufflers and converters | Hyundai India i10 (PA) |
2006 - 2016 |
Sharda Motor Ind. Ltd. (India) |
Licensing technology to manufacture and design mufflers and converters |
Hyundai India i20 (PB) |
2007 - 2016 |
Sharda Motor Ind. Ltd. (India) |
Licensing technology to manufacture and design mufflers and converters that are compliant with Euro 5 standards | Hyundai India i20 (PB) |
2009 - 2017 |
Sharda Motor Ind. Ltd. (India) |
Licensing technology to manufacture and design mufflers and converters | Hyundai India i10 facelift model (PA) |
2009 - 2017 |
Sharda Motor Ind. Ltd. (India) |
Licensing technology to manufacture and design mufflers and converters | Hyundai India i10 facelift model LPG (PA FL) |
2011 - 2019 |
Sharda Motor Ind. Ltd. (India) |
Licensing technology to manufacture and design mufflers and converters | Hyundai India i20 facelift model (PB FL) |
2011 - 2019 |
Matay Otomotiv Yan Sanayi ve Tic. A.S. (Turkey) |
Licensing technology to manufacture and design exhaust systems | Hyundai Turkey Verna (MCT) Lavita (FCT) |
2006 - 2013 |
Matay Otomotiv Yan Sanayi ve Tic. A.S. (Turkey) |
Licensing technology to manufacture and design mufflers and converters that are compliant with Euro 5 standards | Hyundai Turkey i20 (PBT) |
2009 - 2019 |
Matay Otomotiv Yan Sanayi ve Tic. A.S. (Turkey) |
Licensing technology to manufacture and design mufflers | Hyundai Turkey i20 (PBT) |
2011 - 2019 |
Matay Otomotiv Yan Sanayi ve Tic. A.S. (Turkey) |
Licensing technology to manufacture and design mufflers | Hyundai Turkey i10 (IA) |
2012 - 2017 |
Full Wei Industrial Co., Ltd. (Taiwan) |
Licensing technology to manufacture and design mufflers | Hyundai Tucson (LM) |
2011 - 2019 |
Full Wei Industrial Co., Ltd. (Taiwan) |
Licensing technology to manufacture and design mufflers | Hyundai Avante (MD) |
2011 - 2019 |
Full Wei Industrial Co., Ltd. (Taiwan) |
Licensing technology to manufacture and design mufflers | Hyundai Santa Fe (DM) |
2013 - 2017 |
AISB (Malaysia) |
Licensing technology to manufacture and design mufflers | Hyundai Avante (MD) |
2013 - 2018 |
Investment Activities
Investment
In August 2013, the Company announced that its subsidiary SEWOOM will invest approximately 25 billion won to expand production capacity at its Jeongup Plant in Jeollabuk-do. The expansion project, which will add 4,160 square meters of building area to the facility, is planned to be completed in March 2015. SEWOOM is a Tier 1 suppler to the Hyundai and Kia Group. It supplies mufflers and catalytic converters for commercial vehicles. (From a press release, August 19, 2013)
Capital Expenditure (Non-consolidated) |
(in millions of won) |
Vehicle Model (Development code) |
FY ended Dec. 31, 2013 | FY ended Dec. 31, 2014 (Budgeted amount) |
Remarks |
Hyundai Libero (HR) |
134 | 46 | Building a new production line or expanding existing facilities |
Hyundai Successor model to Genesis (DH) |
3,084 | 8,312 | Building a new production line or expanding existing facilities |
Hyundai Successor model to Tucson (LM) |
2,062 | 1,536 | Building a new production line or expanding existing facilities |
Others | 8,370 | 8,943 | - |
Total | 13,650 | 18,837 | - |