Busan, South Korea – Korean rubber goods manufacturer and trade specialist Hwaseung Group has recently spun off its automotive parts arm, in a bid to enhance business efficiency.
As part of the move, group subsidiary Hwaseung R&A was split into two entities: the automotive business Hwaseung R&A and the “surviving entity” Hwaseung Corp., said a group statement 4 June.
The spin-off procedure was completed 15 March, according to the announcement.
Following the separation, Hwaseung Corp. will develop future businesses in non-automotive sectors, for example, industrial rubber products.
It will also serve as a global headquarters for Hwaseung Group which supports and controls affiliates in automotive parts, key industrial materials, and international trade.
Hwaseung R&A, meanwhile, will concentrate on automotive parts and will step up R&D activities for green auto components to “preemptively respond to the rapidly changing paradigm of the automotive market in,” said the statement.
The spin-off, Hwaseung said, will allow the Korean manufacturer to separate investment and operation for higher efficiency and explore different activities.
Hwaseung stated that one of its “biggest missions” is to supply a wide range of rubber products “from day-to-day life to high-tech areas including civil engineering, port operation, construction, and other various industrial projects.”
According to its website, Hwaseung R&A was established in September 1978 as Dongyang Chemical Co.
The company mainly supplies rubber-related auto parts such as weather strips, low-pressure hoses, high-pressure hoses, and air conditioner hoses for powertrains, to major car makers including Hyundai Motors, Kia Motors, GM, FCA, BMW, and Volkswagen.