Hanwha Group Acquires German Automotive Component Manufacturer

Hanwha Advanced Materials, a global high-tech materials specialist of Hanwha Group, acquires the German automotive component manufacturer, Heycoustics.

CEO & President of Hanwha Advanced Materials, Sun Suk Lee signed the agreement for the acquisition on March 12th at the headquarters of Heycoustics located in Dietfurt, Bavaria in Germany.

Heycoustics, founded in 1992, supplies lightweight components to leading German automakers including BMW and Audi with high-tech capabilities, advanced quality control system and geographical advantage. Its major products are lightweight components for automobiles such as superior noise-absorbing wheel arch liners and aerodynamic underbody shields that improve fuel efficiency, the demand of which is increasing.

The acquisition is significant as it allows Hanwha Advanced Materials to establish a production base for automotive components in the heart of the car industry, Germany. Also, it is expected that Hanwha Advanced Materials further boosts its revenues in the European market by securing a strong bridgehead for sales and distribution of its products.

CEO & President Sun Suk Lee of Hanwha Advanced Materials said that the company 'will expand the number of overseas subsidiaries from current five to ten by 2020 through a series of M&As,' adding that "the acquisition of Heycoustics will allow Hanwha Advanced Materials to take a significant step towards achieving its vision of becoming the global leader in lightweight composite materials and components for automobiles.'

Hanwha Advanced Materials first entered the automotive components and materials market in 1986. It holds key technological capabilities in high strength, ultra lightweight materials and components, and currently maintains the world's largest market share in GMT (Glass Fiber Mat Thermoplastics) and LWRT (Low Weight Reinforced Thermoplastics) as well as a strong presence in a variety of lightweight composite materials including EPP (Expanded Polypropylene), SMC (Sheet Molding Compounds) and LFT (Long Fiber Reinforced Thermoplastics).

In addition to its facilities in Korea, Hanwha Advanced Materials has established overseas subsidiaries in the United States, China, and the Czech Republic in order to build local production bases, and currently supplies lightweight materials and components to Hyundai and Kia as well as global automakers including GM, Ford, Volkswagen and Toyota.

Last July, Hanwha Advanced Materials spun off its construction material business arm, Hanwha L&C, refocusing itself into a company specialized in materials. Thanks to these and other efforts, sales for the company's automobile material business increased from $500 million in 2011 to $803 million in 2014.

In 2007, through the acquisition of the American automotive components materials company, Azdel, the world’s leader in LWRT, Hanwha Advanced Materials created foundations of a global network for supplying automotive components and materials to automakers around the world.

According to Visiongain and other market research companies, the global market for lightweight composite materials for automobiles amounts to approximately $11 billion this year and tends to grow rapidly.

· Year of establishment: 1992
· Location: Bavaria, southeast part of Germany (a region known for its automobile industry)
· Total land/plant area: 20,167㎡/ 9,252㎡
· Sales and number of employees: $27 million (2014) / approximately 150
· Major facilities: Wheel Arch Liner Production Line, Press, Post-molding facilities, etc.
· Major clients: Audi, BMW, Volkswagen, etc.
· Major products: Wheel Arch Liner, Under Body