Company News, 2004-02-09, 01:00 AM
ThyssenKrupp to expand presence in South Korea
ThyssenKrupp plans to strengthen its presence in South Korea. "We intend to develop South Korea as a key location for the Group`s activities in the Asia-Pacific region. The acquisition of a majority shareholding in Korea`s second-biggest elevator manufacturer Dongyang in October 2003 was a first important step in this. We are now looking at further acquisitions and joint venture projects with Korean partners," said Prof. Dr. Eckhard Rohkamm, member of the Executive Board of ThyssenKrupp AG and Chief Executive of ThyssenKrupp Technologies AG. Accompanied by other members of ThyssenKrupp AG`s Executive Board, Rohkamm is in Seoul from February 8 to 10, 2004 for talks with high-ranking Korean government and business representatives.
ThyssenKrupp in South Korea
Rohkamm said that the Asia-Pacific region is gaining in importance for the Group due to its growth prospects. ThyssenKrupp generated sales there of around 2.3 billion euros in the past fiscal year 2002/2003, accounting for 10 percent of the Group`s total foreign sales of 23 billion euros. Its presence in the region is being strengthened by targeted strategic acquisitions and joint ventures. The latest example is ThyssenKrupp`s involvement in South Korea. In October 2003, the Group acquired a 75 percent share in the Dongyang group. Rohkamm: "This is ThyssenKrupp`s biggest investment in South Korea to date and the Group`s second-biggest investment in the Asia-Pacific region." The company, now renamed ThyssenKrupp Dongyang Elevator, has around 1,000 employees at its three production locations Ansan, Chonan and Shiwa and generated sales of some 200 million euros in the fiscal year to December 31, 2003. It is Korea`s second-biggest elevator manufacturer with an overall market share of around 25 percent. In the high-performance elevator segment, ThyssenKrupp Dongyang Elevator occupies a leading position with some 40 percent market share.
ThyssenKrupp now has 5 subsidiaries in South Korea. The Group`s 1,100 employees in the country generate sales of 245 million euros.
ThyssenKrupp`s next steps in South Korea
As a business location South Korea offers good conditions for investors: a well-educated workforce, high per capita productivity as well as a strong domestic market with good growth prospects and good connections with key Asia-Pacific sales markets. Rohkamm: "We want to utilize these advantages. We are currently looking at expanding local production capacities and examining the extent to which South Korea is suitable as a location and hub for further cooperative ventures and deliveries to other markets in the region."
Rohkamm continued that ThyssenKrupp is considering further possible acquisitions in the automotive supply sector as well as joint ventures with Korean auto OEMs. In addition, there are further areas of cooperation with local partners which ThyssenKrupp feels hold significant potential: for example, the use of the Transrapid magnetic train to link Incheon Airport - an important air traffic hub in Northeast Asia - and Seoul, or the construction of major chemical plants and processing operations in third markets, in which ThyssenKrupp and Korean companies could combine their product expertise.
With sales of 36 billion euros and 190,000 employees in more than 70 countries, ThyssenKrupp is one of the world`s major industrial and technology groups. The Company occupies leading international market positions. The three main business areas of steel, capital goods and services organized in five segments - Steel, Automotive, Elevator, Technologies and Services - mark out the Group`s areas of competence.
Dr. Jürgen Claassen
Corporate Communications and Central Bureau
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