Hyundai Powertech Co., Ltd. Business Report FY ended Dec. 2016
Financial Overview (Non-consolidated) |
(in million KRW) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | Rate of Change (%) |
Factors | |
| Sales | 3,600,725 | 3,452,812 | 4.3 | - |
| Operating income | 299,853 | 158,559 | 89.1 | - |
| Net income | 180,275 | 129,597 | 39.1 | - |
Recent Development in Korea
-Korea-based Samkee Automotive has signed a valve body and housing converter contract with the Company. Samkee Automotive will supply KWR 21,171 million worth of these products to the Company during the period between April 2018 and April 2021. The valve bodies and housing converters will be used in 6-speed transmissions for Geely Automobile. (From a press release on April 5, 2017)
Contracts
-In March 2012, the Company started shipping 6-speed FWD automatic transmissions to Chrysler of the U.S.A. The shipment is based on a contract the Company won in August 2011 to supply 770,000 6-speed automatic transmissions for the Dodge Dart. The program is worth approximately KRW 1.2 trillion. (From a press release on March 30, 2012)
-In December 2011, the Company was awarded a contract to supply 79,000 units of 6-speed FWD automatic transmissions to Ssangyong Motor's plant in Pyeongtaek. The contract covers five years from 2012, and is expected to be worth KRW 1,215 billion. (From a press release on December 30, 2011)
Recent Development Outside Korea
-The Company established a Mexican subsidiary, Hyundai Powertech Mexico S. de R.L.de C.V., in December 2014. The new company is capitalized at KRW 77,224 million, of which 99.9 percent was provided by the Company. The subsidiary will produce automatic transmissions for Kia Motors' plant in Mexico. (From a press release on December 19, 2014)
-In June 2012, Powertech America, Inc. in Georgia, U.S.A. produced an aggregate total of 1 million transmissions since it began producing them in May 2010. (From a press release on June 1, 2012)
Award
-In September 2010, the Company received the Quality 5 Star Certificate from the Hyundai-Kia Motor Group. (From a press release on September 8, 2010)
R&D Expenditures (Non-consolidated) |
(in million KRW) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | |
| Overall | 34,328 | 32,633 | 26,388 |
| As percentages of total sales (%) | 1.0 | 1.0 | 0.8 |
Investment Amount
|
(in millions of KRW) |
| Business Segment | Investment Period | Investment Target | Planned Results | Total Investment Amount | Amount | |
| Total Invested to Date* | Total Invested in FY2016 (ended in Dec. 2016) | |||||
| 6-speed ATs for front-drive vehicles | 2014 ~ 2016 | Machinery & equipment | Increase productivity | 84,800 | 67,070 | 16,415 |
| 8-speed ATs for rear-drive vehicles | 2014 ~ 2017 | Machinery & equipment | Increase productivity | 129,800 | 31,627 | 10,138 |
| Other investments | 2015 ~ 2017 | Machinery & equipment | Increase productivity | 103,700 | 59,669 | 39,807 |
| Supplemental investment | 2016 ~ 2016 | Machinery & equipment | Increase productivity | 75,600 | 64,855 | 64,855 |
| R&D investment | 2016 ~ 2016 | New-product development | Develop new products | 35,410 | 20,309 | 20,309 |
| Total | 429,310 | 243,530 | 151,524 | |||
*The total invested to date includes the amount invested in FY2016 that ended in Dec. 2016.
R&D Structure
-The Company performs R&D activities at its R&D Center, and also at the Hwaseong Drivetrain R&D Center, which is operated jointly with Hyundai Dymos, Hyundai MSEAT and other suppliers.
Technological Alliance
-The Company signed a technological collaboration contract with Jatco of Japan in February 2002.
Investment Outside Korea
-In September 2013, Hyundai Powertech (Shandong) Co., Ltd. held a ceremony to celebrate the completion of its second plant. The new plant is capable of producing 500,000 automatic transmissions per year, which will increase the Company's total capacity in China to 1 million units per year. Hyundai Powertech (Shandong) supplies automatic transmissions to Beijing Hyundai, Dongfeng Yueda Kia Motors and other automakers. (From a press release on September 27, 2013)