Bosch seeks joint venture in Korea

Bosch Korea CEO Hermann Kaess speaks during a news conference at its key local plant in Daejeon, Tuesday. / Courtesy of Bosch Korea

By Kim Yoo-chul

Bosch, a German manufacturer of automobile components, said Tuesday that it is mulling the possibility to acquire a Korea-based company to expand its local presence.

It also stressed that the company has keen interest in establishing a joint venture with a local company as Bosch hopes to improve revenue.

“Bosch is looking at making acquisition deals or establishing a new joint venture in Korea. Bosch is eyeing firms whose business portfolios are Internet-based,” said Bosch Korea CEO Hermann Kaess in a news conference to unveil this year’s business plan at its key local factory in Daejeon, Tuesday.

The CEO didn’t elaborate further. Last year, Hyundai Motor had ended its joint venture with Bosch for automotive electronics called Kefico. The CEO said the breakup came at the Korean automaker’s requests.

The CEO visited Seoul to participate in the completion ceremony of a new line of its injectors in Daejeon.

Since last year, Bosch Korea invested a total of 60 billion won in building the plant. After running pilot tests, the facility will go online with full capacity from next year, Bosch said in a statement.

The plant is capable of producing 6 million gasoline injectors and Bosch said it will invest an additional 150 billion won to install new controlling equipment. Bosch said the investment will create 400 new jobs.

Bosch officials said the completion of the new line and extra investment means that Bosch Korea will directly handle its eight automobile components-related business divisions.

“In recent years, Bosch saw a big jump in revenue. Last year, the breakup with Hyundai Motors affected us quite negatively. We expect this year will also be tough as the possible risks of economic uncertainties will hit us. Despite such challenging factors, Bosch will expand our business in Korea,” it said.

Last year, Bosch created 2.03 trillion won in revenue. The executive said the average revenue growth rate on an annual basis for Bosch’s Korean business was 13 percent over the last decade.

In a related note, Bosch will invest a total of 170 billion won in Korea by the end of this year, a cut from its earlier projection of 200 billion won.

Bosch said the conservative investment plan was due to decreased corporate profit hit by losses in solar cells that disappointed top management.