Hyundai Elevator vows global expansion at new headquarters in Chungju

The Korea Times

The Korea Times

Business

Sat, September 23, 2023 | 17:52

Companies

Hyundai Elevator vows global expansion at new headquarters in Chungju

Posted : 2022-07-13 16:05

Updated : 2022-07-14 13:24

Hyundai Group Chairwoman Hyun Jeong-eun, fourth from left, and Hyundai Elevator CEO Cho Jae-cheon, third from left, applaud with participants during a ceremony held at Hyundai Elevator headquarters in Chungju, North Chungcheong Province, Wednesday, to celebrate the elevator manufacturer's relocation to the city. Courtesy of Hyundai Elevator

By Park Jae-hyuk

CHUNGJU, North Chungcheong Province ― Hyundai Elevator is aiming to join the world's top five elevator manufacturers, generating 5 trillion won ($3.8 billion) in annual revenue by 2030. It also vowed to increase the proportion of its revenue generated in foreign markets to 50 percent by 2030 from the current 20 percent.

The subsidiary of Hyundai Group presented these goals during Wednesday's ceremony to celebrate the relocation of its headquarters from Icheon, Gyeonggi Province, to Chungju, North Chungcheong Province, which was done for the first time since its establishment in 1984.

"We will expand our global presence by acquiring foreign companies and using metaverse technology to win orders without face-to-face meetings," Hyundai Elevator CEO Cho Jae-cheon told reporters at the new headquarters.

The elevator maker is already operating six overseas subsidiaries in China, Vietnam, Indonesia, Malaysia, Turkey and Brazil, working with agents in 49 countries.

Cho said his company will focus especially on the Indonesian and the Vietnamese markets this year, while considering its expansion in the Middle East and Latin America in the following years.

Such an aggressive global expansion was mentioned as one of the five tasks to be completed to actualize the company's vision, along with digital transformation, the development of innovative products, the expansion of services and entry into the indoor mobility business.

"Although our global market share has stood at around 2 percent, we will expand our presence by reinforcing our sales networks," Cho said.

Hyundai Elevator declared "Mobility to Possibility" as the slogan for the company to seek new business opportunities by 2030 through integration of elevators with futuristic technologies, and also showed off its smart factory neighboring its new headquarters and dormitories for employees.

Based on the internet of things, big data and artificial intelligence technologies, most production lines of the factory are operated autonomously, requiring a minimum level of human involvement.

The company said it has enabled 78 percent automation of its factory, R&D facility and logistics center in Chungju.

It also expects its cost competitiveness to be enhanced through a 25 percent increase in annual production capacity and a 38 percent rise in labor productivity, so that it can increase its annual production capacity to 35,000 elevator units by 2028.

Hyundai Group Chairwoman Hyun Jeong-eun speaks during a ceremony held at Hyundai Elevator headquarters in Chungju, North Chungcheong Province, Wednesday, to celebrate the elevator manufacturer's relocation to the city. Courtesy of Hyundai Elevator

Hyundai Group Chairwoman Hyun Jeong-eun said in her congratulatory address at the ceremony that she hopes Hyundai Elevator continues its innovation.

She cited her late husband, Hyundai Group Chairman Chung Mong-hun, who had emphasized that endless innovation is the only solution to prevent a company from going backward.

"Instead of merely manufacturing elevators locked up inside buildings, we will actualize our slogan of 'Mobility to Possibility' right here in Chungju to make our customers' dreams come true," she said.

Hyun was also appointed as honorary North Chungcheong Province governor during the ceremony. North Chungcheong Province Governor Kim Young-hwan promised that the provincial government will make every effort to support Hyundai Elevator in Chungju.

HDC Group Chairman Chung Mong-gyu, Chungju Mayor Cho Gil-hyeong and Rep. Lee Jong-bae of the ruling People Power Party, one of the National Assembly members representing Chungju, also attended the event to congratulate Hyundai Elevator for relocating its headquarters there.

pjh@koreatimes.co.kr