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[Asia Economy Reporter Jang Hyowon] As countries around the world launch their 'Green New Deal' policies, the competitiveness of Sewon, which is engaged in automotive air conditioning system parts business such as electric vehicles and hydrogen vehicles, as well as the non-memory semiconductor business, is drawing attention.
The Green New Deal refers to policies aimed at addressing the climate crisis by reducing greenhouse gas emissions while simultaneously resolving social and economic inequalities. Recently, with the global economy stagnating due to the spread of the novel coronavirus disease (COVID-19), interest in the Green New Deal has significantly increased worldwide. Since it is based on carbon emission reduction policies, rapid growth in eco-friendly industries such as electric vehicles and secondary batteries is expected.
The EU (European Union) is particularly promoting the Green New Deal centered on bold electric vehicle stimulus measures. The stimulus package includes a budget of 20 billion euros (27 trillion KRW) over two years for the Clean Vehicle Purchase Agency, up to 60 billion euros (81 trillion KRW) for the Clean Vehicle Investment Fund, and exemptions from value-added tax on electric vehicles.
Due to these automotive emission regulations, electric vehicle sales in Europe doubled in the first quarter of this year despite COVID-19. According to Europe EV Sales, total vehicle sales in Europe in the first quarter reached 3,054,703 units, down 26.3% compared to the same period last year, while electric vehicle sales increased by 45% to 228,945 units compared to 125,848 units in the same period last year. Among domestic cars, Hyundai's 'Kona Electric' ranked 8th with 6,077 units, and Kia's 'Niro EV' ranked 14th with 4,366 units.
Sewon supplies automotive air conditioning parts such as header condensers to domestic and international electric and hydrogen vehicles including Hyundai Kia's Kona, Ioniq, Niro, and Nexo. It also supplies some products to Tesla and is expanding supply of cooling parts like battery chillers that enhance electric vehicle battery performance to Ford electric vehicles and others.
Following record-high performance last year driven by increased supply of parts for electric vehicles and the achievements of its subsidiary Trino Technology in the power semiconductor business, Sewon achieved its highest first-quarter results with consolidated sales of 23.4 billion KRW and operating profit of 2.1 billion KRW in the first quarter of this year.
Trino Technology is a specialized company in next-generation SiC (silicon carbide) power semiconductors, which are core components that improve the energy efficiency of electric vehicles. Power semiconductors are used in various fields such as electric vehicles, renewable energy, and industrial equipment. The company has established a joint venture (JV) with the government of Zhangjiagang City, China, for the development and production of power semiconductors and is conducting related business. With the expansion of investment in the domestic non-memory semiconductor industry and accelerated market growth, continuous growth is expected.
A Sewon official stated, “As Green New Deal policies, including expanded support for electric vehicles, are being actively implemented worldwide including in the EU, the US, China, and domestically, electric vehicle sales are expected to increase further. Both Sewon and Trino Technology have unique competitiveness in the electric vehicle-related business sector, so we anticipate benefiting from the growth of the electric and hydrogen vehicle markets.”
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