Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
Hyundai Mobis to build $247mil. EV parts plant in Ulsan
By Kwak Yeon-soo
President Moon Jae-in delivers a speech during a groundbreaking ceremony for a new Hyundai Mobis plant in Ulsan, Wednesday. /Yonhap
By Kwak Yeon-soo
Hyundai Mobis will build its second electric vehicle (EV) parts plant in Ulsan, located in southeastern Korea near Busan, as part of efforts to hone its competitiveness in eco-friendly vehicles, the company said Wednesday.
It already runs an eco-friendly car parts plant in Chungju, North Chungcheong Province, that can produce parts for 400,000 eco-friendly vehicles a year, such as hydrogen fuel-cell electric, all-electric and other lower-emissions cars.
The second EV parts plant, which covers 150,000 square meters, will be completed by early 2021 and begin mass production in the first half of that year, according to Hyundai Mobis.
The company said it will invest 300 billion won ($247 million) in the new plant to make all-electric car components that can be assembled into 100,000 cars a year.
“We will continue to invest in next-generation, high-tech vehicle technologies and related production facilities to respond to rising demand for autonomous and electric vehicles,” a Hyundai Mobis official said.
The company held a groundbreaking ceremony at the Ulsan plant on Wednesday. President Moon Jae-in, Trade Minister Sung Yun-mo, Ulsan Mayor Song Cheol-ho, Hyundai Mobis CEO Park Jung-kook and 200 other guests attended.
President Moon vowed to raise the country's competitiveness to lessen dependence on other countries, while praising Hyundai Mobis' decision to transfer its battery-making operations from China to Ulsan.
“To make Korea a responsible economic powerhouse, we need to lessen dependence on core materials from other countries and drive innovation and competitiveness on our own,” Moon said in a speech during the ceremony.
“In that sense, witnessing Hyundai Mobis' U-turn to Korea demonstrates hope for our economy.”
Moon's visit was widely viewed as part of efforts to enhance competitiveness of innovative technologies and manufacturing facilities amid the trade row with Japan.
As of Aug. 28, Japan's decision to remove Korea from its “whitelist” has taken effect despite Seoul's repeated calls for a diplomatic solution and warnings that the export curbs would undermine the principles of free trade, disturb international supply chains and hurt the global economy.
“The business community should defend its economy at a time when free and fair trade systems are shaken and trade retaliation with a political purpose occurs,” the President said, referring to Japan's export curbs against Korea.
“As we are faced with the Fourth Industrial Revolution, the government will support auto parts makers as well as other core industries so they can sustain their growth momentum amid growing uncertainties in business environments.”
To enhance competitiveness in growing future vehicle markets, Hyundai Mobis plans to spend 4 trillion won over the next three years.
The company expects to achieve a record sales figure this year on higher demand for electric car parts. It posted 1.8 trillion won in sales from EV parts in 2018, up 80 percent from 1 trillion won in 2017, according to Hyundai Mobis.