By Kwak Yeon-soo
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| Hanon Systems logo |
Korea's largest manufacturer of air-conditioning and heating systems for vehicles completed the 1.35 trillion won ($1.2 billion) acquisition last Friday.
The unit provides automakers with thermal and energy management systems that improve conventional and electrified power efficiency. These technologies can be applied to internal combustion engine vehicles as well as hybrid and electric vehicles.
Hanon Systems said it expected the deal to significantly contribute to the company's focus on e-mobility by increasing business in electrified systems through its brushless DC motor and electronic cooling fan, and electronic water pump and transmission oil pump technologies.
The products are key components for hybrid and electric vehicles.
About 4,100 employees at nine manufacturing and engineering facilities across Europe, North America and Asia are involved. It is estimated that the combined annual sales of Hanon Systems and the acquired business in 2018 will be about 7.6 trillion won.
"With this acquisition, Hanon Systems is in a better position to satisfy the increasing demands of automakers for electrified thermal and energy management systems," said Yoon Yeo-eul, Hanon Systems Chairman and Chairman of Hahn & Company, the company's majority shareholder.
"This deal will offer us the opportunity to diversify our global customer base, broaden our global reach and accelerate growth amid automotive trends shifting toward e-mobility."
