Despite China's cooling economy including the automotive market, South Korean suppliers are continuing to invest in that country to keep up with latest trends.
Automotive compounder Kopla Co. Ltd. is investing $45 million to build a production base in Changshu, China. The Siheung, South Korea-based company has recently signed an agreement on the project, according to an Oct. 14 announcement from the Changshu New & Hi-tech Industrial Development Zone.
Kopla will build a 25,000-square-meter facility in Changshu to produce high-performance composite materials for the automotive industry. It anticipates 1 billion yuan of annual sales from the plant once production starts.
The company also will set up a R&D center in Changshu and work on new product development projects with major OEMs including General Motors, Hyundai and Kia, the statement said.
Ulsan, South Korea-based automotive molder Hanil E-Hwa Co. Ltd. also is building capacity in China, with plans to invest $33 million in an interior parts manufacturing facility in Cangzhou, in Hebei province. The Cangzhou local government announced the project last month and expects the facility to reach capacity of 250,000 sets of interior parts annually.
Incheon, South Korea-based Top Metal Works Co. Ltd. is co-investing $13 million with Shanghai Yongli Belting Co. Ltd. to build a joint venture injection molding plant, also in Cangzhou. The factory will make interior panels, door panels and beams for Hyundai's upcoming assembly plant in Cangzhou.
The Hyundai Cangzhou plant started construction in April and is expected to launch by the end of next year. It has created a flurry of investments by its suppliers such as Hyundai Mobis Co. Ltd. and Hyundai Dymos Inc.