Oriental Learns About Hyundai
In preparation for increased attention to its new franchise, Oriental-Hyundai Sdn Bhd (a subsidiary of Oriental Holdings) is actively establishing a close working relationship with its principal in Korea. With this objective in mind, the company is sending delegations to visit Hyundai Motor Company (HMC) and one of the more significant ones was led by Dato’ Robert Wong, DSSA, JP, Group Managing Director of Oriental Holdings. He was accompanied by management executives from Oriental-Hyundai as well as from suppliers in Malaysia who will provide components to Oriental Assemblers in Tampoi, Johor, for Hyundai vehicles.
On this particular visit, the purpose was to see the strength of HMC and find out more about their production technology and design capabilities. The suppliers also had a chance to explore joint-venture proposals with the Koreans with a view of doing business in the domestic and export markets.
Among the many facilities visited was that of Apollo Company, a supplier which makes bumpers and lighting units for HMC, as well as Kwang Jin Company which makes sheet metal pressed parts and door regulators and door modules. Kwang Jin is a 28-year old company which has become the major distributor of window regulators in Korea with a market share of over 80%. The delegation also visited Halla Climate Control Corporation, the largest air-conditioning system manufacturer in Korea.
At HMC’s giant Ulsan factory complex – the world’s largest automobile works covering 4.8 million sq metres – the Malaysian visitors saw how 1.38 million vehicles are produced annually. Part of the secret is the high level of automation – press and body lines are 95% automated while production lines are 80% automated. Most of the production from Ulsan is exported via a nearby port.
Another factory visited was at Ahsan City. This factory is an advanced production facility for the 21st century and has a capacity of 300,000 units annually. It covers 1.8 million sq. metres and is fully automated with high-tech systems.
Needless to say, the visit would not have been complete without going to the head office of HMC in Seoul, Korea’s capital city. There, the delegation received comprehensive briefings from various executives who revealed that HMC, already Korea’s No 1 automaker, aims to be among the top five automakers in the world by 2010. The company will achieve this by widening their product range and investing significantly in R&D.
