S&T Motiv Co., Ltd. (Formerly S&T Daewoo Co., Ltd.) Business Report FY ended Dec. 2016
Financial Overview (Consolidated) |
(in millions KRW) |
| FY ended Dec. 31, 2016 |
FY ended Dec. 31, 2015 |
Rate of change | Remarks | |
| Sales | 1,153,810 | 1,210,524 | (4.7) | Sales by product (Ratio) -Motors: KRW 294,256 million (24.2%) -Engine parts: KRW 200,138 million (16.5%) -Suspension parts: KRW 144,478 million (11.9%) -Electronics: KRW 106,242 million (8.8%) |
| Operating income | 71,647 | 123,133 | (41.8) | - |
| Net income | 34,344 | 97,385 | (64.7) | - |
Reorganization
-The Company announced that it will absorb its subsidiary S&T Electrics Co., Ltd. effective November 8, 2016. The subsidiary is headquartered in Daegu, and produces and sells instrument meters, HVAC switches, and clocks for automobiles. (From a press release on September 1, 2016)
Contracts
<Hyundai/Kia>
-The Company was awarded a contract to supply instrument panels to Hyundai Mobis. This contract, which covers from 2017 through 2023, is expected to generate KRW 60.9 billion in sales. The instrument panels will be installed in a small SUV model (development code: OS) from the Hyundai and Kia Motors Group. (From a press release on December 4, 2015)
-The Company has been awarded a contract to supply its TFT-LCD (thin film transistor-liquid crystal display) instrument panels to Hyundai Mobis. These instrument panels will be used on a successor to the Hyundai Veloster coupe. The contract covers seven years starting from 2017. S&T Motiv expects this business will add approximately KRW 50 billion to its sales. (From a press release on September 8, 2015)
-The Company announced that it will supply room mirror monitors for PSA Peugeot Citroen's minivans sold in Europe. The agreement covers a seven-year period from 2018, and is expected to add approximately KRW 30 billion to the Company's sales. (From a press release on October 22, 2015)
-The Company received a contract to supply control units for Calsonic Kansei's climate control systems. The systems will be installed on the Renault Nissan alliance's mid-size vehicles. This agreement covers a period of six years starting from September 2015, and is expected to generate KRW 97.1 billion in sales. (From a press release on September 24, 2015)
-The Company was awarded a contract to supply engine oil pumps to General Motors' plant in North America. The Company expects to generate KRW 66.8 billion in sales from this agreement, which covers a period between 2018 and 2024. (From a press release on July 14, 2015)
-The Company was awarded a contract to supply suspensions to General Motors Korea. These suspensions will be used on the successor to the Chevrolet Cruze. The contract covers five years from 2017 and is expected to add approximately KRW 16 billion to the Company's sales. (From a press release on July 14, 2015)
-The Company has been awarded a contract to supply automatic transmission oil pumps to General Motors' plants in North America and Mexico. The agreement covers the period from 2018 through 2023 and is expected to generate KRW 224.1 billion in sales. (From a press release on January 12, 2015)
R&D Structure
-The Company conducts its development activities mainly at its technical research center in Busan.
-The Company has a total of 176 researchers at its technical research center and electronic component division as of December 31, 2016.
-S&T Daewoo Automotive Components (Kunshan) Co., Ltd. established a research center in March 2016.
R&D Expenses |
(in millions KRW) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | |
| Amount | 23,980 | 23,813 | 20,608 |
| % of Sales | 2.1% | 2.0% | 1.7% |
Development Activities by Business Division
|
Business |
Overview |
| Motor | - The Company is increasing its shares in the powertrain motor and sunroof motor markets. - The Motor-Driven Power Steering (MDPS) systems, brushless motors, and high-power motors made by the Company are featured in an increasing number of vehicle models. - The Company is developing motors for use in next generation vehicles as well as motors to support X-by-wire technology. |
| Electronic | - The Company developed remote keyless entry systems in 1986. After that, it developed immobilizers and body control modules (BCMs), which are now being mass produced. - Recently it developed a motor-integrated sunroof controllers with an anti-pinching protection function. - The Company is developing in-vehicle cameras and display modules. |
| Vehicle Information System |
- In 1987, the Company formed a technical alliance with Calsonic Kansei Corporation. - In 1995, the Company successfully developed instrument panels in-house. - The Company is developing Full TFT clusters for multimedia interface. |
| Chassis | - In the initial stage, the Company developed its chassis business by collaborating with Boge of Germany, which is now called ZF Sachs. - After that, it developed chassis products on its own, supplying them for use in new vehicle models. - Currently it is transferring its technology to Gabriel India. |
| Airbag | - In the initial stage, the Company developed its airbag business through its technical collaboration with TRW and Breed (now called KSS) based in the U.S. - After that, the Company was successful in developing airbags on its own. |
| Engine components |
- In the initial stage, the Company conducted its development activities based on a technical partnership with AC Rochester (now called AC Delco). - After that, it developed engine components on its own, supplying them for use in new vehicle models. - The Company developed and started commercial production of semi-electronic control throttle bodies in order to support increased use of electronic parts in automobiles. |
Recent Developments
| TNBs (For the PSA K0 project) |
Jan. 2014 - Jan. 2016 |
| Instrument panels (For the GM Uzbekistan M150, T250, J200) |
May 2014 - Apr. 2016 |
| Oil pumps (For GM) |
Jan. 2015 - Feb. 2018 |
| Traction motors (For FCEVs) |
Feb. 2015 - Dec. 2015 |
| BWTTS E-GEAR actuators (For Chinese market) |
Jan. 2015 - Oct. 2015 |
| ASG DRB motors (For European market) |
Jan. 2015 - Mar. 2016 |
| EV traction motors (For Hyundai Kia) |
Nov. 2014 - Apr. 2016 |
| R-MDPS motors (For Hyundai Mobis) |
Jul. 2015 - Mar. 2017 |
| Transfer cases (For Magna) |
Jun. 2015 - Apr. 2017 |
| Room mirror displays (For PSA) |
Nov. 2015 - Feb. 2018 |
| Instrument panels (For GM 9BUX) |
Oct. 2016 - Apr. 2019 |