Hanon Systems leads eco-friendly car market

By Jhoo Dong-chan

Hanon Systems may be less known to the public for its air conditioning products compared to its strong presence in the global automotive industry. As far as eco-friendly technologies are concerned, however, it simply stands out.

“Hanon Systems may not be such a big name like Samsung Electronics or Hyundai Motor, but is a top technology company that leads the global automotive thermal and energy management market,” Hanon Systems CEO Lee In-young said in a recent interview with The Korea Times.

Hanon Systems employs about 16,500 employees at its four R&D centers and 40 manufacturing sites in 19 countries around the world. It recorded 5.7 trillion won ($5.1 billion) in sales and 423 billion won in operating profit last year.

Hanon Systems has maintained the No. 2 place in the global air conditioning industry next to the only Japanese powerhouse Denso, but Lee said the company’s energy-efficiency tech will change the game.

In particular, the company’s excellence in energy efficiency has been recognized several times around the world.

In February, Hanon Systems was named the co-winner of Korea’s IR52 Jang Young-shil Award with Hyundai Motor for its water- and air-cooled condenser for passenger vehicles. Named after one of the country’s greatest inventors in the 15th century, it is an annual award presented to Korean firms with technologically outstanding and innovative new products.

The award-winning condenser combines a conventional air-cooled condenser with a water-cooled condenser into a single, compact package that reduces power consumption and increases fuel efficiency.

U.S.-based business magazine Forbes listed Hanon Systems as one of the top 50 companies in the Asia-Pacific region last September.

“Range has been the most important element in terms of EV technology. And efficient air conditioning that consumes less battery power has become more and more important,” Lee said.

“Hanon Systems and Hyundai Motor jointly developed the water- and air-cooled condenser that reduces power consumption and increases fuel efficiency.”

In recognition of its technological edge, brokerage houses are now paying attention to the potential of Hanon Systems.

“Hanon Systems’ sales related to Hyundai Motor Group’s eco-friendly vehicles marked 2.1 percent of its overall turnover last year. If Hyundai Motor Group sells more than 200,000 eco-friendly cars this year, the figure is expected to jump to 3.2 percent,” said Park In-woo, an analyst at Mirae Asset Daewoo.

“It also recently inked an eco-friendly parts-supply deal with a Chinese carmaker, while pushing ahead with its plan to establish a joint venture in China.”