— Expected to expand the mobility value chain in Southeast Asia starting from Indonesia, the next-generation mobility hub
— Full-scale mass production to begin at the end of this year, with an annual production target of 500,000 units by 2028
The grand opening ceremony for the Indonesian plant of Sugihara Hyundai Automotive (SHA), a joint venture between Hyundai Corporation and Sugihara, a Japanese auto parts manufacturer, was held on August 31 in Bekasi Cikarang near Jakarta. The ceremony was attended by Ambassador Lee Sang-deok of the Republic of Korea to Indonesia, Indonesian government officials, executives and employees of Sugihara, including President Shigeru Sugihara, and Hyundai Corporation’s Chairman Chung Mong-hyuk, Vice Chairman Kim Won-kab, Vice President Nam Geun-ho and officials from the VS Team.
▲ The grand opening ceremony for the Indonesian manufacturing plant of Sugihara Hyundai Automotive (SHA), an auto parts joint venture between Hyundai Corporation and Sugihara, was held in Bekasi Cikarang on August 31.
(From left) Sugihara Director Ishii, Managing Director Jeong Hee-seop of Hyundai Motor Manufacturing Indonesia (HMMI), President Shigeru Sugihara, Ambassador Lee Sang-deok, Chairman Chung Mong-hyuk, and SHA President Bae Jae-yong
The ceremony began with a video introducing SHA and a congratulatory performance, followed by an opening speech by SHA President Bae Jae-yong, a congratulatory speech by Ambassador Lee Sang-deok, ribbon cutting, a tour of the production line, and a luncheon.
In his opening speech, SHA President Bae Jae-yong said, “SHA is a company established through collaboration between Japan’s Sugihara and Korea’s Hyundai Corporation with the shared goal of pioneering the Southeast Asian market,” and expressed his aspirations by saying “Starting with the Indonesian automobile market, which has a bright future, our common goal is to promote the growth of SHA by combining Hyundai Corporation’s network and Sugihara’s technological capabilities.”
Ambassador Lee Sang-deok said, “This year marks the 50th anniversary of the establishment of diplomatic ties between the Republic of Korea and Indonesia, and the cooperative relationship between the two countries is deepening every year. From this perspective, I think the opening of SHA’s Indonesian auto parts plant today can be another meaningful start — and the ROK-Japan relations have recently shown a significant improvement thanks to the efforts shown by President Yoon Suk Yeol and Japanese Prime Minister Fumio Kishida, and SHA will be a model case by opening a new horizon for the ROK-Japan cooperation in a third country.” He also added, “I sincerely hope for the success of Hyundai Corporation as the company ventures into the new field of automobile parts.”
▲ Executives from the headquarters and local staff had a commemorative photo taken to celebrate the opening of SHA
The SHA factory produces ultra-light trunk boards in an area of 1,500㎡. The main item is SGU-boards (Sugihara Glass Fiber Urethane Board), ultra-light trunk boards featuring a honeycomb paper structure. The company plans to supply all trunk boards produced at the factory to Mazda, a Japanese automotive manufacturer, and gradually attract more global automakers, including the Hyundai Motor Company with its plant established in Bekasi, Indonesia.
This ceremony came 10 months after the signing of the contract on the creation of the joint venture in October 2022. Plant construction began and equipment was brought in May 2023, and test production took place in June 2023. Following the grand opening ceremony, preparations for mass production will begin in September, and after the scheduled process audit by Mazda in November, mass production will begin in earnest in December. The goal is to produce 500,000 trunk boards annually by 2028, starting with 120,000 units in 2024 in the SHA plant.
▲ Production line at SHA Indonesia plant (polyurethane application process)
Kang Kwang-mook, a VS team professional in charge of the opening ceremony, said, “SHA is planning to increase orders from automakers in Southeast Asia in addition to Mazda’s CapEx purchase order. He expressed his ambition by saying, “We will cooperate with those at each base in Southeast Asia to receive additional orders by the end of 2025, when the current factory lease expires.”
President Yoon Suk Yeol visited Indonesia to attend a summit with Indonesian President Joko Widodo on September 8 and promised to actively cooperate in building a favorable ecosystem for Indonesia’s electric vehicle and battery industry. Indonesia has recently emerged as a next-generation mobility hub following China. In this situation, we hope that all employees will join in supporting SHA, which is accelerating the expansion of the mobility value chain in Southeast Asia.