– Builds a Manufacturing Plant with Japan’s Sugihara in Indonesia to be Officially Opened at Ceremony by Next Week

Hyundai Corporation is taking a new turn in the auto parts business. Although Chairman Chung Mong-hyuk of Hyundai Corporation chose auto parts as a new business, the plan has been at a standstill due to the impact of Russia-Ukraine War. To turn things around, the company is opening a new plant in Indonesia instead of Russia. Hyundai Corporation has even readjusted the mass production schedule earlier than originally planned to spur new business.

According to industry sources on August 22, Hyundai Corporation is about to resume its auto parts business. This time in Indonesia, not Russia. The opening ceremony of the manufacturing plant built on a 7,000㎡ site near Jakarta is scheduled to be held this week or next week at the latest. Given the large-scale investment, Chairman Chung is likely to attend the event in person.

Reportedly, it was Chairman Chung who signed the final contract to establish this factory with Sugihara, a Japanese company specializing in automotive interior products. It appears that Mr. Chung is directly leading the new business that will determine the future of the group. Like other general trading companies, Hyundai Corporation intends to discover new businesses to overcome the limits of profit generation in the existing trading (brokerage) business.

The company established Sugihara Hyundai Automotive, a joint venture between Hyundai Corporation and Sugihara. The Indonesian factory is expected to produce 500,000 automobile parts per year, and trial production began in June 2023 prior to full-scale mass production.

 

JAugust 22, 2023
Aju Business Daily