SEOUL, South Korea--(BUSINESS WIRE)--Hyosung (KRX:004800) Cho Hyun Joon Chairman has given two directions of the group’s second takeoff after its annual earning profit exceeded 1 trillion won last year for the first time since its foundation. They are ‘ICT’ and ‘Localization’. It has increased added value of its products by grafting cutting-edge technology onto them, while creating new markets with customized local strategy.
Fusion of existing manufacturing industry with state-of-the-art ICT
Hyosung has grafted ICT onto its existing products in electric power industry. One of the model cases of such technical fusion is its smart transformer business. The mixed tech gathers big data from transformers to improve their operational efficiency and then predicts breakdowns in the products. Hyosung completed the development of its smart transformer business in 2016, and installed them at domestic electric power substations as a demo project. The customers have shown positive responses to the smart transformers even during their test runs.
Hyosung ITX signed a sales agreement with China’s communications equipment maker Huawei Technologies. As an official sales partner of Huawei, Hyosung ITX is supplying servers, storages and network solutions of Huawei. "As both companies have concentrated on R&D in cloud, big data and Internet of Things, they will be able to cooperate in various business fields through technological tie-ups,” a Hyosung official said.
Market creation with localization strategy
Hyosung supplies yarns exclusively to a local apparel company in Indonesia in a move to encroach its market of 250 million people. Its yarns have great deodorizing and cooling effects, a compelling feature in hot and humid weather. Hyosung’s localized materials as in the Indonesian case are being supplied not only in Southeast Asia but in Europe and the US, giving a momentum to its textile business leading the global market.
With the ATM market expanding in the US, Nautilus Hyosung America Inc. opened the Service Operation Center (SOC), a new service center, in March for an integrated management of its service quality. The SOC is a headquarters-level service control center, where the overall operation of about 9,000 Nautilus Hyosung ATMs in 32 US states are managed through a large LCD monitor. It is an advanced form of a call center which receives customer complaints and then addresses them ex post facto. As more ATMs are being installed across the US, the new system is intended to build customer trust by improving its service quality through an efficient centralized management of customer complaints and breakdowns.
Meanwhile, Hyosung constructed a nitrogen trifluoride plant with the capacity of 13 million tons in March and a spandex plant with the capacity of 16,000 tons in May, both in Quzhou County, China. Nitrogen trifluoride is gas used to etch silicon wafers. Hyosung’s advance to China was what Cho Hyun Joon Chairman intended. Hyosung Cho Hyun Joon Chairman said, “We must target the Chinese market first to be the world No. 1 in spandex business.” He formed Team Project C in the late 1990s and led its penetration into the market. C stands for China. “China subsidiaries carry out localization strategy by appointing local employees to major positions across all business processes including production, marketing and purchase,” a Hyosung official said. “They have served as a role model for all other Hyosung production bases built worldwide later.”