 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] A fire at an automotive parts supplier is disrupting vehicle production across Hyundai Motor Group, with the impact expanding to temporary shutdowns at Kia plants.
According to industry sources on March 25, a fire at engine valve manufacturer Saean Industrial has halted the supply of critical components. The affected parts are supplied to Hyundai’s Ulsan and Asan plants, as well as Kia’s AutoLand facilities in Hwaseong, Gwangmyeong, and Gwangju.
Engine valves are essential components that regulate the intake of air and fuel and the exhaust of gases. The supply disruption is therefore directly affecting vehicle production.
Kia has begun suspending or adjusting operations at several production lines. Its AutoLand Hwaseong engine plant has reduced working hours from eight hours to two on March 25 and 26 due to disruptions in the production of key engines, including the Theta engine. The plant is scheduled for a full shutdown on March 27.
As engines produced at the facility are supplied to other plants, including Gwangmyeong, the disruption is expected to affect finished vehicle production as well.
Partner manufacturers are also scaling back operations. Donghee Auto, which produces models such as the Morning and Ray on a contract basis, plans to suspend operations at its Seosan plant from April 1 to 11 and will partially reduce output starting March 27.
Hyundai Motor stated that direct production disruptions remain limited for now. Its Ulsan plant continues to operate normally, and the company plans to mitigate the impact by adjusting production schedules for models requiring engine valves.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
