Yesterday I read the article that Hanhwa group will sell auto parts business unit and will focus on their existing business.
It’s Hanhwa’s strategy to improve efficiency by liquidation of business unit which has no connectivity to their existing business.
According to the collected information from DART, Hanhwa published that they will sell auto parts business in their machinery sector to Dongil Ind. which is in steel business sector. For this, Hanhwa will physically divide the auto parts business unit and sell 100% stock holdings to Donil Ind.
The sale size is about 3,700,000,0000 KRW (it’s about USD 323 million). It will be divided at 1st of Feb. 2019.
After that, only industrial automatic machinery will remain in their machinery sector of Hanhwa.
Hanhwa is continually restructuring itself for its management efficiency. It transferred their machine tool business unit to their subsidiary companies. Recently it reorganized their Solar photovoltaic project too. Eventually Hanhwa group schemes to be simplify the business by focusing on Solar energy and Defense industry – their basic business.
Dongil Ind. produces automobile and light equipment/machinery parts. The sales turnover of first half of this year is USD 176 million, profit is USD 12 million.
>>>>>>Actually I never know Hanhwa group has auto parts business before I read this article. It’s clever way to focus on its basic. Personally I think they through out the auto parts business because of the current crisis in Korean automobile industry.