Hyundai Wia eyes spot in global top 20

By Kang Seung-woo

Hyundai Wia, the nation’s automotive parts, machine tools and heavy machinery manufacturer, said Wednesday that it will add more automakers to its customer list in efforts to make the global top 20 in the field by 2020. It currently ranks 65th.

The company plans to expand into overseas markets, while it is undergoing the process to be listed this year.

“To become one of the nation’s top 20 companies, we need to reduce our heavy dependence on Hyundai Motor and Kia Motors,” CEO Lheem Heung-soo said in a news conference.

Hyundai, established in 1976, is headquartered in Changwon, South Gyeongsang Province and focuses on producing transmissions, drive and steering systems, aircraft parts, machine tools and robots.

“We are currently in talks with General Motors, Chrysler, Volkswagen, Renault and Mitsubishi.”

According to company officials, it is seeking to reduce its dependence on its mother conglomerate to at least 60 percent from the current 75 percent. Hyundai-Kia Automotive Group holds a 78.79 percent stake in the affiliate.

On the strength of the rapid growth of Hyundai and Kia, Wia posted a sharp jump in profits, with sales rising from 300 billion won in 1999 to 3 trillion won in 2008. In 2009 it had 3.11 trillion won in sales and 112.8 billion won in operating profit.

The firm will break ground for its second plant for machine tools in Zhangjiajie, China this month and it announced on Monday the beginning of operations in India, saying that it will set up two plants focusing on automotive parts.

It also said that it has increased its exports to Indonesia, Turkey and Egypt.

Wia plans a 480 million won initial public offering (IPO) next month and targets pricing its shares at between 53,000 won and 60,000 won.