Hands Corporation, the largest vehicle wheel maker in South Korea, is considering facility expansion to meet growing demands, while expanding its presence in global markets with premium design and lightweight technology.

“Our multi-year research and development (R&D) in aluminum and magnesium-based lightweight wheels and colorfully designed wheels using the latest plating engineering helps drive our revenue. Production is also increasing with diversified supplies to Hyundai Motor Group and major global automakers,” said Seung Hyun-chang, chief executive of Hands Corporation.

Hands Corporation, formerly Donghwa Plywood Co., started as a lumber company in 1972 and transformed itself into a vehicle wheel manufacturer in the 1980s to ride on the growth of the automotive industry. The company produces more than 1,000 types of car wheels with 13 to 20 inches in diameter. It is the largest car wheel producer in Korea with a 45 percent market share and the fifth largest one globally with a 7 percent market share.

Hands Corporation’s advantage lies in its capability to produce high value wheels. Its stalwart aluminum and magnesium wheels are more than 30 percent lighter than conventional wheels and provide stable high strength. Driven by strong demands from high-end cars, large wheels 18 inches or above in size represent almost 40 percent of total output. Hands Corporation’s wheel weighs about 4 kilograms versus a previous wheel weighing more than 12 kilograms and this lightweight property improves fuel economy by more than 8 percent on average and helps boost horse power.

In 2013, the company developed the industry’s first PVD vacuum plating technology, which generates brightness that exceeds chrome plating and realizes a radiant black pearl color. “The existing chrome plating or wet plating produces colorful effects but faces environmental hurdles due to its association with enormous waste water and sewage, while PVD processing is very popular as more than 2 million wheels sold three years after the new process was developed. Rival wheel makers leave PVD plating to contractors and it takes longer than three days until production, but we can make it within 24 hours,” Seung said.

Hands Corporation maintains its R&D spending at some 15 billion won ($12.8 million) annually and filed more than 30 patent registrations related to car wheels since 2010.

Hands Corporation’s key customers include Hyundai Motor Group in Korea and GM, Ford, Chrysler, Renault-Nissan, Volkswagen, Fiat, Daihatsu and Suzuki globally. Recently, the company is in talks with two to three major carmakes for additional wheel supply. It generated 45 percent of revenue from overseas last year.

Production output almost doubled in the past 10 years, posting 7.5 million units in 2005 and 13.5 million units last year. It is considering expanding production lines to reach a target of 2 million units next year. Revenue more than quadrupled from 150 billion won to 676 billion won in the same period. This year’s sales are expected to reach close to 700 billion won.

By Jin Young-tae

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]