Korea’s Hanil E-Hwa boosts capacity

Gary Anglebrandt and Seo Ju Mi

SEOUL — Hanil E-Hwa Co. of South Korea, a maker of door trim, headliners and other interior components, plans to double capacity at its Chinese factories.
Korean auto suppliers are boosting capacity in China to supply parts to Hyundai-Kia Automotive Group.

Hyundai Motor Co. is doubling capacity at its Beijing factory site to 600,000, and Kia Motors Corp.’s site in Yancheng City will jump to 430,000 from its current 130,000. Both expansions are to begin production late this year.

Hanil E-Hwa operates two main factories in China: one in Beijing near Hyundai’s site and one in Jiangsu Province near Kia’s Yancheng site.

The Beijing plant has a capacity of 300,000 door trim units, and the Jiangsu plant has a capacity of 200,000 units. Both plants will in the next two years gradually double in capacity, said Yoo Hyuk Sang, general manager of sales.

The output is for the domestic market, and Hanil does not plan exports at this time. The company has no other plans for expansions in China, Yoo said.

Hanil E-Hwa will supply parts, mostly door trim, for Hyundai’s Accent, Elantra, Sonata and Tucson models; and Kia’s Rio, Cerato and Carnival models.
Hanil E-Hwa reported total sales in China of 835 million yuan ($109.7 million) last year and anticipates sales of 933 million yuan ($122.7 million) this year, Yoo said.

Hanil E-Hwa, a publicly traded company, reported global 2006 revenue of $939 million, he said.

July 11, 2007 | Automotive News China (now defunct)