Leading Domestic Internal Combustion Engine Piston Manufacturer Advances as a Key Player in Eco-Friendly Vehicles
[Asia Economy Reporter Hyungsoo Park] Dongyang Piston is showing strong performance. News that a series of regulations related to the hydrogen sector are being lifted in connection with carbon neutrality appears to have influenced the stock price. Hyundai Motor Company has presented a hydrogen-related blueprint, drawing significant attention.
As of 11:28 AM on the 16th, Dongyang Piston is trading at 10,400 KRW, up 5.05% from the previous day.
The Ministry of Trade, Industry and Energy announced that it approved a total of 25 demonstration special cases through the Industrial Convergence Regulation Special Committee held at Post Tower in Jung-gu, Seoul the day before. Regulations in the energy sector, which can be considered the core of carbon neutrality, were primarily eased.
The keyword is ‘hydrogen.’ Three demonstration special cases related to liquefied hydrogen plant construction, charging station operation, and transportation, applied for by SK E&S, Hyosung Hydrogen, and others, will be implemented. This makes it possible to establish the first liquefied hydrogen facility in Korea. In the hydrogen mobility sector, requests from Hyundai Motor Company, CJ Logistics, and Hyundai Glovis were accepted. A path has opened to replace existing logistics trucks with 10-ton class hydrogen electric trucks. Commercialization will be permitted after observing demonstration results for two years.
Minister of Trade, Industry and Energy Moon Seung-wook emphasized, “Through this demonstration, investments worth at least 1 trillion KRW will be made in Ulsan, Incheon, and Changwon, contributing to the activation of the hydrogen economy,” adding, “The regulatory sandbox will be a shortcut to early realization of carbon neutrality.”
Dongyang Piston is an automobile piston manufacturer producing and supplying about 300 types of engine pistons through self-developed production facilities. In addition to engine pistons applied to internal combustion engine vehicles, the company is expanding its product lineup to eco-friendly vehicles with hydrogen electric vehicle enclosures (hydrogen fuel cell stack protective parts) and electric vehicle heat dissipation modules.
In November 2018, Dongyang Piston acquired the hydrogen fuel cell vehicle enclosure business division from Wooshin Industrial. The enclosure is a key component of hydrogen electric vehicles that protects the fuel cell stack from external shocks. Through supply contracts with Hyundai Motor Company, it is supplied to hydrogen cars and hydrogen buses. Heat dissipation modules for electric vehicles and parts for air suspension (Separate Assembly) are also scheduled for mass production. In July, the company signed a supply contract worth 26.9 billion KRW with Hyundai Motor Company for hydrogen electric vehicle fuel cell parts.
Since being selected as a target company for the Ministry of Trade, Industry and Energy’s Special Act on Corporate Vitality Enhancement’s business restructuring plan on December 28 last year, Dongyang Piston has been accelerating its transformation into a ‘global eco-friendly automobile parts’ specialized company through continuous expansion of eco-friendly vehicle business scale, following orders for heat dissipation modules and air suspension Separate Assy to be applied to electric vehicles.
Although Dongyang Piston is a specialized manufacturer of engine pistons for internal combustion engines with the number one domestic market share and fourth in the world, it has been approved as a company undergoing industrial restructuring from an internal combustion engine automobile parts company to an eco-friendly automobile parts company. Accordingly, the eco-friendly automobile-related business currently underway is expected to gain momentum.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
