 |
[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyundai Mobis sells its Chongqing plant in China. The decision comes after Hyundai Motor is restructuring its business in China, including the recent sale of its Chongqing plant.
According to the auto industry on the 18th, Hyundai Mobis is in the process of selling its Chongqing plant. The Hyundai Mobis Chongqing plant, which was completed in 2017, is a production hub established locally to supply parts to Hyundai Motor's Chongqing plant and others. Hyundai Mobis has seven production facilities, including Chongqing, Beijing, Jiangsu, Wuxi and Tianjin.
Hyundai Mobis' decision to sell its Chongqing plant is attributable to Hyundai Motor's business reorganization due to sluggish sales in China. Hyundai Motor (including Kia) recorded the lowest market share of 1.4% in China last year.
Hyundai Motor sold its first plant in Beijing in 2021 and recently sold its Chongqing plant for 1.62 billion yuan (about 290 billion won). It has completed the sale of two of its five plants and plans to sell an additional plant in Changzhou within the year. The goal is to increase profitability by slimming down the Chinese business with only two factories left.
Hyundai Motor's slump led to Hyundai Mobis' worsening business in China. In the third quarter of last year, Hyundai Mobis' sales in China reached 690.5 billion won, down 84.1 billion won (10.8%) from 774.6 billion won a year earlier.
HL Mando, a component company that entered Chongqing, China with Hyundai Motor, has already withdrawn last year. In addition, Hyundai Motor partners such as Hyundai Steel, Kolon Glotech, Eura Corporation, and Hwashin have sold or are in the process of producing facilities.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
