Sejong Industrial Co., Ltd. Business Report FY ended Dec. 2014
Highlights in recent years
Financial Overview (Consolidated) |
(in millions of won) |
FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | Rate of Change (%) |
Remarks | |
Sales | 1,116,740 | 1,093,718 | 2.1 | Sales by product (FY ended Dec. 31, 2014) Mufflers & Catalytic converters : 1,059,690 million won (94.9%) |
Operating income | 42,128 | 57,470 | (26.7) | - |
Net income | 22,617 | 46,464 | (51.3) | - |
Acquisition
-In April 2014, the Company acquired a 100 percent share in Asentec Co., Ltd., an auto parts supplier based in Asan, Chungcheongnam-do. Asentec manufactures products such as wheel speed sensors, pinion sensor cover assemblies, wire harness assemblies, and radar unit assemblies for smart cruise control systems. Its major customers include Hyundai Motor, Kia Motors, General Motors, Shanghai GM, and GM Holden. The company, which is capitalized at KRW 1,600 million, generated KRW 55,622 million in sales during 2013. (From a press release on August 29, 2014)
Certificate
-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)
Subsidiaries
-In January 2015, the Company established Sejong Mexico LLC to produce mufflers for the Mexican market. The new subsidiary is capitalized at KRW 5,454 million, of which 99.9 percent was invested by Sejong Industrial and the remaining 0.1 percent was provided by Sejong America LLC. (From a press release on January 30, 2015)
R&D Structure
-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, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |
Amount | 29,542 | 26,593 | 26,645 |
% of Sales | 6.6% | 5.7% | 5.8% |
R&D Achievements in Recent Years
Area of development (Development code) |
Development period |
Status |
Developing blower motors for rechargeable battery cooling |
Apr. 2010 - Mar. 2015 |
Currently under development |
Developing catalytic exhaust purification devices | Dec. 2011 - Nov. 2014 |
Development project was completed |
Developing variable pressure PEMFC parts to make smaller products |
Jul. 2011 - Jun. 2016 |
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 injection modules for urea SCR systems used on clean diesel passenger vehicles |
Sep. 2012 - Aug. 2014 |
Development project was completed |
Developing converters that meet the Euro6 standards |
Sep. 2012 - Mar. 2014 |
Development project was completed |
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 |
Developing precision temperature control thermoelectric cooling elements and 0.7W/cm2 thermoelectric cooling elements |
Jun. 2014 - May 2017 |
Currently under development |
Developing low noise muffler technology by optimizing design variable |
Aug. 2014 - Jan. 2015 |
Currently under development |
Developing and aiming to commercialize automotive safety system sensors and processor SoCs |
Dec. 2014 - Sep. 2016 |
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 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) |
2005 - 2012 |
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 |
Full Wei Industrial Co., Ltd. (Taiwan) |
Licensing technology to manufacture and design mufflers | Hyundai Tucson facelift model (LM) |
2014 - 2018 |
AISB (Malaysia) |
Licensing technology to manufacture and design mufflers | Hyundai Avante (MD) |
2013 - 2018 |
Tenneco (Brazil) |
Licensing technology to manufacture and design DPFs | Kia Bongo (PU) |
2013 - 2018 |
Capital Expenditure (Non-consolidated) |
(in millions of won) |
Vehicle Model (Development code) |
FY ended Dec. 31, 2014 | Remarks |
Hyundai A2 engine | 521 | Building a new production line or expanding existing facilities |
Hyundai Successor model to Genesis Coupe (VK) |
527 | Building a new production line or expanding existing facilities |
Others | 4,878 | - |
Total | 5,926 | - |
Vehicle Model (Development code) |
FY ended Dec. 31, 2015 (Planned) |
Remarks |
Hyundai Avante (AD) |
95 | Setting up lines to produce components for new vehicle models and increasing production efficiency |
Hyundai Successor model to i30 (GD) |
18 | Setting up lines to produce components for new vehicle models and increasing production efficiency |
Hyundai Tucson (TL) |
57 | Setting up lines to produce components for new vehicle models and increasing production efficiency |
Hyundai Sonata (LFD) |
14 | Setting up lines to produce components for new vehicle models and increasing production efficiency |
Hyundai Successor model to Starex (TQ) |
27 | Setting up lines to produce components for new vehicle models and increasing production efficiency |
Hyundai Environmentally friendly vehicles (AE) |
84 | Setting up lines to produce components for new vehicle models and increasing production efficiency |
Others | 13,522 | - |
Total | 13,817 | - |
Data
Sales (Consolidated) |
(in millions of won) |
FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | ||
Mufflers & Catalyst converters |
Export | 946,802 | 964,458 | 889,353 |
Korea | 112,888 | 109,527 | 107,488 | |
Subtotal | 1,059,690 | 1,073,985 | 996,841 | |
Body parts | Export | 0 | 3,829 | 6,547 |
Korea | 89 | 149 | 226 | |
Subtotal | 89 | 3,978 | 6,773 | |
Others | Export | 15,223 | 9,600 | 10,284 |
Korea | 41,739 | 6,156 | 3,779 | |
Subtotal | 56,962 | 15,756 | 14,034 | |
Total | Export | 962,025 | 977,887 | 906,184 |
Korea | 154,716 | 115,832 | 111,493 | |
Total | 1,116,740 | 1,093,719 | 1,017,677 |
Production Capacity (Non-consolidated) |
(in thousands of unit, in millions of won) |
Product | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |||
Unit | Amount | Unit | Amount | Unit | Amount | |
Mufflers & Catalytic converters |
2,001 | 248,717 | 2,126 | 258,497 | 2,296 | 283,798 |
Body parts | 0 | 0 | 90 | 2,992 | 147 | 5,299 |
Total | 2,001 | 248,717 | 2,216 | 261,490 | 2,443 | 289,097 |
Production Result (Non-consolidated) |
(in thousands of unit, in millions of won) |
Product | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |||
Unit | Amount | Unit | Amount | Unit | Amount | |
Mufflers & Catalytic converters | 1,951 | 242,853 | 2,009 | 244,298 | 2,110 | 260,747 |
Body parts | 0 | 0 | 85 | 2,828 | 135 | 4,868 |
Total | 1,951 | 242,853 | 2,094 | 247,126 | 2,245 | 265,615 |
Capacity Utilization Ratio
FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |
Ulsan plant (Headquarters) |
97.5% | 94.5% | 91.9% |
*The utilization rate was calculated by dividing the actual number of operating hours by the maximum number of possible operating hours per year.>>>Financial Data