Hyundai Robotics Co. was officially launched on Thursday as the holding company of the Hyundai Heavy Industries Group with the aim to diversify its products and exports markets.
The company started operations at its new headquarters in Daegu, 302 kilometers southeast of Seoul, where it completed a smart factory in April that converges information, communication and technology with production.
Hyundai Robotics, established in 1984 as a team under Hyundai Heavy Industries, is South Korea's top manufacturer of industrial robots. It independently developed multi-joint robots in 1995 and LCD robots in 2007.
"The market for industrial robots is an area in which high growth rate, an annual average of 10 percent, is forecast," company CEO Youn Joong-geun said at the launch ceremony. "We will consistently increase R&D investment and expand our business network to achieve 500 billion won ($443.38 million) in sales by 2021 to become the world's fifth-ranked robotics company."
Company officials and guests take a group photo at the launch ceremony of Hyundai Robotics Co. in Daegu, 302 kilometers southeast of Seoul, on Aug. 31, 2017. (Photo courtesy of Hyundai Robotics Co.) (Yonhap)
The firm announced its "Vision 2021" goals of strengthening competitiveness in key products, diversifying products and market, creating a new business model, and entering the Chinese market as a step to becoming a global company.
Other targets also include doubling annual output to over 8,000 units by 2021.
Daegu city government helped establish a robotics business cluster by inviting related contractors to operate close to the firm.
The company was one of the four affiliates that were spun off from Hyundai Heavy Industries Group in April in a measure the conglomerate said is aimed at bolstering the competitiveness of each subsidiary. The robotics arm has been moving to purchase shares in the affiliates so as to become the holding company of the group that stands over Hyundai Heavy Industries, Hyundai Construction Equipment and Hyundai Electric and Energy Systems as well as unlisted Hyundai Oil Bank and Hyundai Global Service.
Hyundai Robotics' second-quarter sales increased 10 percent from the same quarter of the previous year while operational profit rate rose 10 percent. (Yonhap)