Hyundai Mobis Co. said yesterday it decided to merge with a subsidiary that makes brake systems in a bid to control half of the domestic market for conventional brake systems.
"Unifying our brake system business would allow us to invest more efficiently in technological development to enhance product quality and enforce a more systematic sales strategy," the nation`s largest automotive parts maker said.
Mobis said its board of directors approved yesterday the merger of Korea Automotive Systems Co., which will take effect from June.
By building plants in China and the southeastern city of Changwon, Kasco`s annual production capacity for conventional brake systems will be raised from the current 1.7 million units to 3 million units, Mobis said. The company plans to invest 110 billion won in the CBS business by 2010.
Having posted sales of 284 billion won and operating profit of 11 billion won last year, Kasco manufactures brake systems and power steering oil pumps.
Hyundai Mobis bought a controlling 38.3 percent of Kasco`s shares in June 2005.
(sophie@heraldcorp.com)


By Kim So-hyun