BUSAN, South Korea—Korean rubber goods manufacturer and trade specialist Hwaseung Group recently spun off its automotive parts unit in a bid to enhance business efficiency.
As part of the move, group subsidiary Hwaseung R&A was split into two entities: the automotive business Hwaseung R&A and the "surviving entity" Hwaseung Corp., the group said on June 4.
The spin-off was completed March 15, according to the company.
Following the separation, Hwaseung Corp. will develop future businesses in non-automotive sectors—for example, industrial rubber products.
It also will serve as a global headquarters for Hwaseung Group, which supports and controls affiliates in automotive parts, key industrial materials and international trade.
Hwaseung R&A, meanwhile, will concentrate on automotive parts and will step up R&D activities for green auto components to "pre-emptively respond to the rapidly changing paradigm of the automotive market," the statement said.
The spin-off, Hwaseung said, will allow the South Korean manufacturer to separate investment and operation for higher efficiency and explore different activities.
Hwaseung said one of its "biggest missions" is to supply a wide range of rubber products "from day-to-day life to high-tech areas including civil engineering, port operation, construction, and other various industrial projects."
Hwaseung R&A was established in September 1978 as Dongyang Chemical Co.
The company mainly supplies rubber-related auto parts such as weather strips, low-pressure hoses, high-pressure hoses, and air conditioner hoses for powertrains, to major car makers including Hyundai Motors, Kia Motors, GM, FCA, BMW, and Volkswagen.