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Biz News Korea(Eng)
Hanon Systems to expand its manufacturing facility in Dalian, China
- Collected
- 2017.12.19
- Distributed
- 2017.12.20
- Source
- Go Direct
The company announced on Sunday that it signed an investment agreement with the Dalian municipal government to accelerate the process to build the third plant in JinPu New Area, after signing a memorandum of understanding with the Dalian Development Zone Investment Promotion Bureau during the World Economic Forum (WEF) in June. It did not disclose specific figures for the amount of the investment and the Chinese government’s incentive.
Honon Systems set up its subsidiary in Dalian in 2004 and first expanded its plant in 2011. Once the third factory is completed, its whole manufacturing site would cover a 98,000-square-meter area, 14 times the size of Seoul World Cup Stadium.
The Dalian plant annually produces 2.7 million units of automotive compressors that are shipped to local Chinese carmakers as well as the global finished automakers. The factory expansion would help it to add the production capacity by 1 million units a year.
The company has recently established a joint venture with two affiliates of China South Industries Group Corp. - Chongqing Jianshe Motorcycle and Chongqing Jianshe Mechanical and Electrical Equipment- to produce automotive air-conditioning systems. The joint venture will supply its products to China’s biggest automaker Changan Automobile Co.
Shars of Hanon Systems closed Monday at 13,950 won, up 4.49 percent from the previous session.
By Lee Seung-hoon and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]