Hankook outlines plans for Hanon Systems

Seoul – Hankook & Co. Group is targeting sales of KRW 30 trillion (€20.283 billion) by 2030 through “expanding additional businesses based on next-generation technology beyond the automotive industry.”

That’s according to Hyunbum Cho, chairman, Hankook & Co. Group, in a 14 May release confirming the Korean group’s plan to acquire a majority-shareholding in Hanon Systems (ERJ report).

By acquiring management rights in Hanon Systems, Hankook will “become a provider of crucial technology for the electric vehicle era, including TMS [thermal management systems] and tires,” stated Cho.

By working with TMS solutions alongside its tire products, the Korean group expects to further strengthen its business portfolio, according to the chairman.

As reported by ERJ, the €1.1-billion transaction will see Hankook increase its stake in the automotive supplier from an existing 19.49% to 50.53%.

Upon finalisation of the deal, expected by the yearend, Hankook total global assets are forecast to reach around KRW26 trillion, positioning it among South Korea’s top 30 companies.

Hanon Systems is considered “the world’s second-largest company in TMS for electric vehicles,” offering services from complete design to parts supply.

According to Hankook, the acquired business is set for a high level of growth through technology advances in TMS areas, including compressors and integrated coolant modules.

Hanon Systems operates 53 production locations across 21 countries and reported sales of KRW9.6 trillion last year.

Some of Hanon Systems key clients include Hyundai Motor Group, Ford, Volkswagen, BMW and Mercedes-Benz.