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[Alpha Biz=(Chicago) Reporter Kim Jisun] HD Hyundai Electric is planning to diversify its profits by building a smart factory for medium and low pressure circuit breaker. Distribution equipment accounts for 24.5% of HD Hyundai Electric's sales.
According to the Financial Supervisory Service's electronic disclosure system on the 15th, Hyundai Electric plans to invest 117.3 billion won in Cheongju, North Chungcheong Province, to complete a smart factory for medium- and low-pressure breakers with a total area of 85,420 square meters by 2025. The purpose of investment was to strengthen manufacturing competitiveness through automation and expand market share.
Hyundai Electric's investment project to expand the production capacity of low-pressure circuit breaker (CAPA) is large enough to account for 14.1% of its equity capital of KRW 831.2 billion last year. Considering that Hyundai Electric's investment project to expand production capacity is less than 30 billion won, it has shown its willingness to foster its distribution equipment business.
Operating profit is also expected to increase as Hyundai Electric invests in expanding production capacity of medium and low pressure circuit breaker. This is due to the recent increase in operating profit compared to the total amount of orders and sales. Orders for the electronics and electronics sector (power, power distribution and rotating equipment) rose 40.5 percent to 7.626 trillion won in the third quarter of this year from 5.28 trillion won in the third quarter of last year, with sales rising 33.5 percent to 1.9055 trillion won from 1.427 trillion won and operating profit of 190.6 billion won from 81.8 billion won.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
