Hansae Mobility, a Korea-based automotive parts manufacturer, announced plans on Wednesday to expand its production facility in the US, amid concerns over possible tariffs proposed by US President Donald Trump.
“By 2027, we are looking to relocate our US plant to a larger facility near a local plant of our largest client, Stellantis,” Hansae Mobility Vice Chair Kim Ik-hwan said.
The plan was unveiled during a media tour of the company’s plant in Daegu — the first such tour since its acquisition in 2024 by Hansae Yes24 Group, a Korean conglomerate engaged in apparel manufacturing, publishing and online retail.
Hansae Mobility supplies halfshafts — a type of drive axle that transmits torque from the engine or motor to the wheels — for global automakers such as Stellantis, Porsche, Volkswagen and Rivian.
Currently, Hansae Mobility’s US plant in Michigan is in charge of only assembly operations, while core manufacturing remains in Korea. The company plans to expand its current 15,000-square-meter facility to over 40,000 square meters, with a corresponding increase in production capacity.
“With the expansion, our facility will enable us to carry out the entire production process in the US, including material sourcing and processing,” Kim added.
With over half of the company’s production in Korea shipped to the US, it has been concerned about the potential impact of a proposed 25 percent tariff on imported auto parts, currently postponed until May 3.
In line with the concern, the company set a sales target for 2025 of 48.55 billion won ($34.1 million), down from last year’s sales of 50.5 billion won.
“In the short term, we will request our customers to reimburse part of the tariff. While we supply critical parts, it poses too much risk if we bear the entire burden, which could even lead to halting supply,” said Sung Nag-gon, CEO of the company.
Sung added that Stellantis had already shared proposals for support in early April, and that discussions with other clients will follow.
Along with its facility expansion plan, the company announced its vision to achieve 1 trillion won in sales by 2030, focusing on enhancing its expertise in halfshafts, which account for 60 percent of its total sales.
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