Hanhwa L&C Expands Overseas
Presence in Automotive Parts

Opens Shanghai plant following the ones in Alabama and Beijing

Hanhwa L&C has accelerated efforts to strengthen its presence in foreign countries in the automotive parts sector.
The integrated chemicals affiliate of Hanhwa business Group dedicated an automotive parts plant in Shanghai on Aug. 18 as part of its bid to reposition itself as a global automotive parts powerhouse.
The completion of the Shanghai automotive parts plant came about three months after the company dedicated an automotive parts plant in Alabama, the United States on May 8.
A locally incorporated company was established in July last year for the construction of the automotive parts plant in Shanghai, which began last October. The project cost $15 million in investments for the construction of two glass mat reinforced thermoplastics (GMT) assembly lines on a plot of 40,000 sq. meters.
On hand at a ceremony marking the opening of the Shanghai automotive parts plant were Cho Chang-ho, president and CEO of Hanhwa L&C, Kim Yang, Korean consul-general in Shanghai and Hwnag Min-hwa, head of KOTRA China.
Hanhwa L&C said in his speech during the ceremony, "Hanhwa E&C has established a foundation for becoming a global automotive parts maker as it has completed the plant in Shanghai following the ones in Beijing and Alabama, the United States."Shanghai is setting its sight on becoming a global business hub as the Chinese city is set to play host at the 2010 Shanghai Expo.
Following the completion of the Shanghai automotive parts plant, Hanhwa L&C plans to diversify its business lines to such global automakers as Shanghai GM and Shanghai Volkswagen.
Hanhwa L&C has thrown down the gauntlet to competitors in the United States, a global automobile manufacturing base, as it opened MaxForma Plastics LLC in Alabama. The plant was put into operation with an opening ceremony on May 8 after construction of the plant was finished last March.
Participants of the opening ceremony included Hanhwa CEO-President Cho Chang-ho, Alabama Gov. Bob Riley. Opelika Mayor Gary Fuller and Al Cook, director-general in charge of industry development at the Opelika municipal government.
Korean automobile-related companies are paying keen interest in Hanhwa L&C's entry into the American automotive parts industry in connection with its efforts to make Hanhwa L&C a global automotive parts powerhouse. Hanhwa L&C's dedication of the Alabama automotive parts plant came in connection with Hyundai Automotive Group's advance to the Unites States. The plant is located between Montgomery, Ala., where Hyundai Motor and Hyundai Mobis plants have already been open and West Point City, Georgia, where Kia Motors is set to build an automobile manufacturing plant.
The Alabama plant, built on a plot of 25,000 pyeong (82,500 sq. meters) is capable of churning out 2.100 tons of automotive parts, including undercover and buffer beam, made with GMT and bumper core, made with Expanded PolyPropylene (EPP), equivalent to about 370,000 automobile units per year.
It aims to post 13 billion won in sales during this year with the goal of becoming the largest molding company in North America.
Hanhwa L&C officials expect that their company will raise its technology power in competition with global players with advanced technological prowess and create new demands in the North American market.
Capitalizing on its expanded overseas information network, the company plans to penetrate the American construction materials and ICT/electronics materials market on top of the automotive parts market. nw

Hanhwa L&C holds a ceremony for opening an automotive parts plant in Shanghai (right photo) and and the one in Alabama, the United States, on Aug.18 and May 8, respectively.