MEDIA / H-Story

Hyundai Corporation plans to etablish a joint venture with a Japanese auto interior material maker
CEO and Chairman Chung Mong-Hyuck says, “Hyundai Corporation will expand its global hub”

Hyundai Corporation expects to set up a joint venture with a Japanese auto parts manufacturer in Indonesia. Chairman Chung Mong-Hyuck’s previous endeavors to make inroads not only in local but also in global auto component markets failed to produce tangible results. Against this backdrop, major players in global markets have shown special interest in his new JV project. Chairman Chung is the son of the late reporter Chung Shin-Yung who is the fifth younger brother of the late Hyundai Group Honorary Chairman Chung Ju-Yung. According to the financial circles on September 29th, Hyundai Corporation plans to join hands with a Japanese auto interior material (trunk boards and so forth) manufacturer to build a 7000㎡ plant near Jakarta, Indonesia. The project aims to produce 500,000 units a year, with the two companies equally sharing the required investment. Test production is scheduled to begin in June, next year, before initiating mass-production in 2024. In connection with this project, chairman Chung is known to visit Japan in the middle of next month in order to sign a final deal.

An official from Hyundai Corporation explains, “Components manufactured in Indonesia will be supplied to Japanese automakers and we will keep raising the number of clients.”

Last May, the comapany was chosen as the priority negotiating partner for acquiring Shinki Intermobile, a primary supplier for Hyundai Motor Group and plastic parts manufacturer for automobiles. However, Hyundai Corporation scrapped its plan to acquire the company in the middle of its due diligence process. “Acquiring an auto component maker is under review,” said an HC official.

Hyundai Corporation Group Chairman Chung Mong-Hyuck (center), executives, and employees shout together, “Let’s Go,” at an event commemorating the 46th anniversary of Hyundai Corporation held at Four Seasons Hotel Seoul on September 28, 2022.

On the other hand, Hyundai Corporation held a ceremony celebrating its 46th anniversary for the first time in three years due to the COVID-19 on September 28. Chairman Chung stressed in his motivational speech, “The late Honorary Chairman Chung Ju-Yung solemnly ordered us to take the lead in cultivating global markets and required human resources. Five to ten years from now, Hyundai Corporation will grow to become a global enterprise that operates head offices not only in Seoul but also in every NEST.”

September 29, 2022, Maeil Business Newspaper