Wednesday, August 20th, 2014
Hyundai Motor Group will implement three merger cases concurrently as part of a plan to restructure its affiliates. The group said on August 19 in a regulatory filing that Hyundai Wia will acquire Hyundai Wisco and Hyundai Metia, Hyundai AutoEver will buy up Hyundai C&I, and Hyundai Engineering & Construction will absorb Hyundai E&C Talent Training Center. The effective date for the mergers will be November 1.
A Hyundai Wia official said, "We decided to acquire the two companies in order to strengthen our capabilities in metal materials and processing that are critically important in automotive parts quality. Hyundai Metia is a company specializing in die casting while Hyundai Wisco a specialist in metal forging. Until now, Hyundai Wia has produced powertrains with the supply of cast and forged components, it will be able to establish a vertically integrated production system.
In addition, Hyundai AutoEver, the company responsible for system integration for the whole Hyundai Motor Group, will merge with Hyundai C&I. Hyundai E&C will do the same with its employee training unit. A group official said, "The mergers are intended to raise competitiveness through consolidation." Last year, the group completed two large-scale mergers including the one between Hyundai Steel and Hyundai Hysco's cold-rolled plate unit and the other between Hyundai Amco and Hyundai Engineering.
