Lightweight Auto Material
Hanwha Group is to take over German auto parts company HEYCoustics after the acquisition of Samsung Group’s subsidiaries in the defense and chemicals sectors.
Hanwha Group’s material manufacturing company, Hanwha Advanced Materials, announced that it would take over German auto parts company HEYCoustics. Established in 1992, HEYCoustics is currently supplying auto parts to BMW, Audi, and Volkswagen based on its technology, the quality control system, and the accessibility of its geographic location.
The annual sales of the company is 30 billion won (US$26.73 million). The major production goods are weight reduction auto parts, which is in increasing demand from auto manufacturers, including wheel arch liners offering noise reduction and underbody shields improving fuel consumption.
The acquisition is meaningful considering the fact that the company secured the foundation to produce auto parts in Germany, the hub of the world’s auto industry, and established the business foundation to win contracts and sell products in Europe.
Also, there will be synergy effects in the company as it produces weight reduction auto parts using materials manufactured by Hanwha Advanced Materials.
Lee Sun-suk, executive director of Hanwha Advanced Materials, said, “Through M&As, we will increase the number of foreign branches from the current five to 10 by 2020.”