Boosting Exports to $2.2 Bln
- Hyundai Mobis shoots for 6.8 tln won in domestic sales this year


Hyundai Mobis, the largest automobile parts manufacturer in South Korea, has set the goal of expanding its annual global turnover to $2.2 billion, up 47 percent from 2004, by taking advantage of a well-built global sales network.
Chairman Park Jeong-in said that a growing presence of Hyundai Motor and Kia Motors in overseas market will help its further advance on the global car market.
Park said Mobis will achieve $1.2 billion in exports this year, up 7.9 percent from 2004. Its annual sales at home are also expected to grow by 5.7 percent to 6.8 trillion won.
Hyundai Mobis, the largest shareholder of Hyundai-Kia Automotive Group, provides parts for Korea's two largest automakers. The firm has been establishing an overseas network to meet the growing needs for auto parts service for Korean cars.
The CEO said Mobis will be able to provide more modules for Hyundai and Kia models once the U.S. factory in Alabama begins operations in March and their sales in China improve.
The company has allocated some 438.5 billion won for R and D activities. It plans to spend the money in setting up a module factory in Slovakia, supporting the development of new technologies and establishing more logistics offices at home and abroad.
"The year 2005 will be a remarkable one for us in developing into one of the top 10 auto parts manufacturers in the world," Park said in a seminar attended by some 140 Mobis executives and employees.
"We should pool our wisdom to achieve the goal. We need to use more aggressive overseas marketing, work for better risk management and develop new business strategies to keep up with changes in the future," he said.
Hyundai Mobis will continue to expand its global marketing and service network in order to offer customized services to consumers.
In the module manufacturing business, the firm aims to surpass 4.15 trillion won in annual turnover at year's end, up 7.2 percent from 2004. Auto parts sales are expected to grow by 2.3 percent to 2.4 trillion won.
Mobis plans to expand investments in research and development to invent new auto parts technologies. To that end, the firm will establish unmanned production lines at its plants and focus more on developing lighter parts and environment-friendly products. Through the process, the firm will be able to stand on its own feet in the development of key items that can lead the firm's future growth.
Also, Mobis will pay more attention in exporting modules and other value-added products rather than simple car parts, Park said.
Hyundai Mobis said its sales grew by 21.3 percent to 6.43 trillion won last year thanks to growing demand in the world markets for Korean cars.
The auto parts manufacturer said it became financially more healthy last year as its debt-to-equity ratio improved from 109.3 percent to 99.3 percent. Net profit reached a record 696 billion won up by 26.4 percent year-on-year and operating profits grew to 751.8 billion won.
"We have so many good signs for our plan to become one of the top 10 auto parts suppliers in the world by 2010," Park said. "We will keep strengthening our global marketing network to attain the goal of boosting sales to 6.8 trillion won and expanding profits to 764.6 billion won this year."
Mobis has seen its global sales growing in many overseas countries as South Korean cars gain popularity. Mobis provides parts for Hyundai Motor and Kia Motors, the top two car makers in South Korea.
Park said the firm would write off debts by boosting sales through a well-established global supply chain. It plans to improve the debt-to-equity ratio to 84.5 percent this year.
Mobis attributed its growth to a refined global logistics network. The firm already has six logistics centers in the world, but will set up seven more in the coming years in an effort to provide parts at the right time at the right place, a key condition to improve consumer satisfaction, the firm said. nw