Hyundai Wia creates a joint venture with a Japanese manufacturer of turbochargers

Hyundai WIA South Korea, the largest manufacturer of auto parts, laid the foundation for a joint venture with the Japanese manufacturer of turbochargers IHI Corporation.

The joint venture of Hyundai Wia IHI Turbo LLC plans to produce 250 thousand units of turbochargers at its SEOSAN factory, located 150 kilometers southwest of Seoul since 2015. SP plans to provide an annual production capacity of 750 thousand units by 2019, while both sides are going to invest 33 million US dollars in their project.

The turbocharger is a key component that can reduce the amount of exhaust gases and increase fuel efficiency, as well as increase the engine power. IHI provides its turbochargers for leading automakers in the world, including Mercedes-Benz, Volkswagen and Toyota.

Wia Hyundai said she has a 51 percent share in a joint venture, while the rest of the IHI belongs to the rest. The contract expires in 2024. Hyundai Wia said their Japanese partner agreed to transfer key technologies in the creation of turbochargers by 2016, which will ultimately help South Korean automakers to reduce their dependence on foreign turbochargers.

The annual sales of turbochargers in South Korea is estimated at 1.7 million units in the amount of 420 billion won. Hyundai Wia is the second in the country for the production of auto parts and the fifth largest automaker in the world.