Global automotive technology and services supplier Bosch says it is growing rapidly in South Korea, a country where it has had operations since the past 30 years
06 Jul 2015 | 6535 Views | By Autocar Pro News Desk
Global automotive technology and services supplier Bosch says it is growing rapidly in South Korea, a country where it has had operations since the past 30 years. In 2014, it generated consolidated sales of 1.5 billion euros there, registering growth of 21 percent.
“We expect to be able to expand our ...
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Global automotive technology and services supplier Bosch says it is growing rapidly in South Korea, a country where it has had operations since the past 30 years. In 2014, it generated consolidated sales of 1.5 billion euros there, registering growth of 21 percent.
“We expect to be able to expand our business in South Korea at a similar pace in the years ahead,” said Peter Tyroller, the Bosch board of management member responsible for Asia Pacific. He added that this success is the result of a long-term strategy of continuous investment in the expansion of local activities. To further strengthen its position in the Korean market, Bosch recently announced a joint venture with the wiper manufacturer Kyung Chang Wiper Corp. (KCW).
Within the next few weeks, the joint venture will start operations as KB Wiper Systems (KBWS) which will have 700 staffers. Bosch plans to contribute its wiper business in South Korea to the new company. KCW will be adding its global business with wiper arms and blades. The joint venture’s new headquarters will be in Daegu.
“The partnership with KCW brings us even closer to our customers, thereby strengthening the position of our wiper systems in the Korean market. The new company will allow us to develop products that are geared to both original equipment manufacturers and the aftermarket,” said Dr. Frank Schäfers, president of Robert Bosch Korea.
Bosch is celebrating its 30th anniversary in South Korea this year. All its business sectors – Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology – are now represented in the country at a total of six locations. In Yongin, south of Seoul, where Bosch has its Korean corporate headquarters, there is also an engineering centre since 1990, where 250 engineers are currently working on solutions for the local market. In Daejeon, the company has been manufacturing components for diesel engines since 2001. In the past five years alone, Bosch has invested more than 200 million euros in the expansion of its manufacturing and engineering locations in Korea. The company currently employs nearly 2,000 associates in South Korea.
Asia Pacific: No. 1 growth region
In Asia Pacific, Bosch grew its sales 17 percent (19 percent after adjusting for exchange-rate effects) in 2014, to 13 billion euros. At just under 27 percent, the region’s share of total sales reached a new high. Sales growth was especially strong in China, rising a nominal 27 percent to 6.4 billion euros.
According to Peter Tyroller, established markets such as South Korea and Japan remain an important pillar of Bosch’s growth strategy in Asia Pacific: “In industrialised markets, our focus is on innovative products, services, and new business models which create additional customer benefit and spark enthusiasm.”
Bosch also sees great business opportunities in the area of connectivity in South Korea, one of the world’s leading economy for key industries in this field.