IHL Co., Ltd., a subsidiary of Hyundai Motor Group, revealed on March 10 that it decided to establish an auto parts factory and technology research institute at Daegu Technopolis in Daegu-Gyeongbuk Free Economic Zone (DGFEZ) and will commence construction of the facilities in April this year.
To pave the way, IHL concluded an investment MOU with DGFEZ Authority at Daegu City Hall with the participation of related officials, including Daegu Mayor KIM Bum-il and IHL CEO Joo Hyun.
Under the MOU, IHL will invest a total of 102 billion won in a 48,500m2 site at Daegu Technopolis over the next five years and complete its auto parts factory by December this year as the first stage and its technology research institute and A/S facility by August 2013 as the second stage.
When facility investment is completed, IHL's sales, which were 257 billion won last year, are expected to reach 400 billion won, while bringing a new employment inducement effect of about 500 jobs.
Of particular note, IHL also unveiled its plan to strengthen win-win growth further with about 30 cooperating companies, including eight firms in the Daegu region with IHL's parts procurement ratio reaching 50%, through its support of mold development costs and management improvement funds. Therefore, IHL's presence is likely to stimulate the auto parts industry throughout the region.
Hyundai Motor Group's Daegu investment is significant in that the region is recognized by a major conglomerate as an optimum site for automobile-related investment, momentum is created for win-win growth between large enterprises and SMEs, about 500 new jobs will be created and a positive effect made on early creation of the Daegu National Science Industrial Complex.
Incorporated into Hyundai Motor Group in 2004 as a subsidiary of Hyundai MOBIS, IHL has a 42% market share in the domestic automobile rear lamp and fog lamp markets. IHL also supplies products to Volkswagen and Audi of Europe, Chrysler of the United States, and Matsuda, Mitsubishi Fuso and Subaru of Japan, as well as to Hyundai Motor, Kia Motors and Hyundai MOBIS.