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Hyosung Group Chairman Cho Hyun-joon sets out to take over the U.S. market, the largest global market in preparation for the post-coronavirus era in earnest.
Hyosung said on 13th Chairman Cho recently made successive visits to the ultra-high voltage transformer plant of Hyosung Heavy Industries in Memphis, Tennessee and the US corporation of Hyosung TNS in Dallas, Texas.
The visits on this occasion were made as part of management by wandering around for the flagship businesses′ invasion of the U.S. market.
Such move is made by the strategic judgment that it is imperative to gain recognition of technology and quality in the U.S., the key market, and penetrate the U.S. market ahead of the competitors in an attempt to solidify the world′s no. 1 position in the global market in the wake of the COVID-19 pandemic and gain a momentum to expand the new markets.
The Biden administration has recently unveiled its plan to invest about 1.2 trillion dollars for the improvement of infrastructure such as electrical grids and new renewable energy, etc. A rapid growth is expected around the high-tech industrial fields such as SOC project, energy and automobile.
In response, Chairman Cho emphasized, ″the U.S. is the core of the global market which is rapidly changing in the post-coronavirus era″, and ″it is imperative to increase the dominant power in the U.S. market based on the meticulous localization strategies and customer-oriented preemptive action″.
□ Chairman Cho, Discussing Mutual Cooperative Plan with the Tennessee Senator Bill Hagerty
Early September, Chairman Cho made a visit to the ultra-high voltage transformer plant in Memphis, Tennessee, which is the first U.S. production base in the heavy industry field and checked the trends and prospect of the U.S. market, and the future strategies, etc.
Chairman Cho also met with Tennessee Senator Bill Hagerty to ask for the support and cooperation in performing businesses in the U.S., toured the production site in Memphis together
Senator Bill Hagerty worked as an entrepreneur for a long time and mobilized investments in Tennessee from global companies while working in the department of the development of economy and local community of Tennessee′s state government during the period from 2011 to 2014. He served as an ambassador to Japan during the Trump administration and works as the Tennessee Senator starting from January this year.
On this occasion, Chairman Cho expressed his appreciation for the support of the Tennessee State and said, ″I will make efforts to nurture the experts of heavy industry technology in the local community, and strengthen the partnership with electrical power companies, thereby contributing to the achievement of a win-win situation with the local communities in Tennessee and the improvement of the infrastructure in the U.S. electrical power market″.
Senator Bill Hagerty responded that he will spare no efforts for the diversified and full support to grow the Memphis plant and expand the business at the federal government level.
Chairman Cho proposed the business cooperation with the Tennessee Electric Power Board to Senator Hagerty and they discussed the plan to operate the industry-academia liaison program with major universities in Tennessee State to nurture technical manpower in the heavy electrical field. Chairman Cho also said he will provide support for the establishment of the part supply system using local companies.
The Memphis plant is pushing for the extension of installations by the end of the year to increase production. Upon completion of the extension, the Memphis plant will have the production capacity of 60 ultra-high voltage transformers a year. It is the two-fold increase compared with an initial goal and at least 100 million dollars is expected in sales next year.
Hyosung plans to utilize the Memphis plant as a bona fide foothold for the U.S. market in the heavy industry field. In addition, Hyosung will respond to the future demand for the replacement of electricity infrastructure in the U.S. and start in earnest to make inroads into the new renewable energy markets such as Energy Storage System (ESS) and STATCOM (Static Synchronous Compensator).
□ Making a Visit to the ATM Showroom of Hyosung TNS and Demanding Innovation Along with Digital Banking
Chairman Cho made a visit to Nautilus Hyosung America (NHA), which is the U.S. corporation of Hyosung TNS in Dallas, Texas on 10th (local time). He inspected the NHA showroom and products and sought for the plans to target the markets such as the future marketing strategies.
After entering the U.S. market in the mid 2000′s, Hyosung TNS has occupied the market share of 73% in the small ATM market with a focus on the customer-oriented marketing, taking the first place in sales. ATM products are supplied in large numbers to major banks, capitalizing on the differentiated functions such as recycler.
Chairman Cho met with financial and IT experts in the U.S. to discuss the rapidly changing market trends. Meanwhile he demanded the U.S. corporation of Hyosung TNS should set out on the rigorous innovation and technological development to survive in the market, while keeping abreast with the U.S. financial and settlement trends going digital at an accelerating speed.
Hyosung TNS plans to strengthen the cooperation with the U.S. financial institutions to embark on the development of software and platform such as kiosk for cryptocurrency transactions.
□ Focus Efforts on Automotive Parts and Materials to Embrace the Era of Electric Cars and Hydrogen Powered Cars
Meanwhile, Hyosung reinforces its efforts to target the U.S. automobile market which has clearly entered the upward trend in the post-COVID-19 era. The US major automakers declared that they will expand the share of electric cars up to 50% until 2030 and the markets for automotive parts and materials are expected to grow rapidly.
Hyosung focuses its efforts on the development and expansion of supply of tire cord for electric cars and hydrogen powered cars, while planning to spur the development of advanced materials such as aramid to be used in tire cord for electric cars, and automotive materials such as carpets, etc.
※ Reference: Trends of Hyosung′s U.S. Businesses
- After initially entering the U.S. market in the 1980′s, Hyosung has so far invested about 3 billion dollars and currently runs 6 corporations including three manufacturing corporations and three sales corporations. Last year, about 1.2 billion dollars was recorded in sales and at least 1.6 billion dollars in sales is expected this year. About 1,400 employees are hired.
- Manufacturing corporations include the ultra-high voltage transformer plant in Memphis, Tennessee, the tire cord plant in Decatur, Alabama, and the airbag fiber plant in South Hill, Virginia, while the sales corporations sell the fiber products, tire cord, carbon fiber, ATM products, etc.