Kyungdong Navien opens Mexican corporation

South Korea's leading heating systems manufacturer Kyungdong Navien said on Monday that it has opened a new overseas corporation in Mexico, marking an important step in its plans for expansion into the Central and South American market.

The company held an opening ceremony in Mexico City on June 29, local time. This move comes as part of Kyungdong Navien's strategy to capitalize on Mexico's booming water heater market, which sees over 700,000 units sold annually and shows signs of steady growth.

Kyungdong Navien has historically focused on marketing low-cost products but now sees an opportunity in Mexico for high-end products, backed by their technical prowess. The establishment of a local corporation aligns with the company's anticipation of increased demand for such products.

The firm also disclosed plans to further extend its reach to other Central and South American countries, once it establishes a solid market base in Mexico.

The Mexican corporation is Kyungdong Navien's eighth overseas corporation. Currently, the company exports boilers and water heaters to 47 countries worldwide, with overseas sales making up about 67% of its total sales last year.

Moreover, it was reported that 88% of all boiler products exported from South Korea are produced by Kyungdong Navien, underlining the company's dominance in the industry.

Write to Byung-Keun Kim at bk11@hankyung.com