Hanon Systems Corp., a South Korean auto parts maker, said on Wednesday it aims to become the world’s top supplier of automotive thermal and energy management systems by 2030, riding on the industry’s swift shift toward eco-friendly vehicles.
Addressing a meeting of ruling party officials and auto industry representatives, Son Jeong-won (Jay), Hanon’s chief executive, said the industry’s move to adopt more eco-friendly parts in future cars represents a significant opportunity for the company.
“With our competitive technological prowess in the cooling and energy management business, Hanon wants to lead the global market by 2030,” Son said at a future mobility conference hosted by the “K-New Deal” committee of the ruling Democratic Party of Korea.
Ruling party leader Lee Hae-chan, government officials and industry executives hosted the meeting at the Hyundai Motor Group’s Hyundai Motor Studio in Goyang, northwest of Seoul, to discuss the future of the Korean auto industry.
With the economy slowing rapidly in the wake of the coronavirus pandemic, the government unveiled a $133 billion spending plan in July, which President Moon Jae-in called the "K-New Deal," echoing the term used by US President Franklin Roosevelt for the programs to pull his country out of the Great Depression in the 1930s.
Under the plan, South Korea will invest 160 trillion won ($133 billion) to lead the post-coronavirus world with its advanced technology in key projects such as artificial intelligence government, green energy and eco-friendly future mobility.
Son Jeong-won, Hanon Systems' president and chief executive officer, highlights Hanon's success story at a conference on future mobility hosted by the ruling Democratic Party of Korea
ECO-FRIENDLY CARS TO MAKE UP OVER 60% OF GLOBAL CAR PRODUCTION
According to HIS Markit, eco-friendly cars are forecast to account for more than 60% of the total global auto production in 2030. Riding this wave, Hanon has invested 1.35 trillion won in related research and development projects over the past five years.
Hanon CEO Son said some 38% of the auto parts orders the company received from automakers were related to eco-friendly cars in 2018 and the ratio rose to 55% in 2019.
“The technology of automatic air conditioning controls inside the car is the key to growth in the era of future mobility,” Son said.
Hanon Systems, formerly Halla Visteon Climate Control Corp., is mainly engaged in the manufacturing and sale of automotive thermal management systems and automotive parts, including air conditioners, heaters, cooling modules and compressors. Among its major clients are Hyundai Motor and General Motors Co.
Majority-owned by Hahn & Co., a Korean private equity investment group, Hanon competes with auto parts makers such as Japan’s Denso Corp. in the global thermal and energy market. Hanon posted 7 trillion won in revenue last year.
Meanwhile, Hanon’s shares rose by the daily limit of 30% to 14,150 won on Wednesday as investors bet on the auto parts maker’s growth potential.
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