Busan Jugong Enters Agricultural Machinery Parts Market... Sales Expected to Increase with Strong K-Agricultural Machinery Exports

[Asia Economy Reporter Kwon Jaehee] Busan Jugong, a vehicle parts company, is expanding its business into agricultural machinery parts to diversify its supply sources.

Busan Jugong announced on the 11th that it has received orders for tractor parts such as hydraulic components and gear cases from a major domestic agricultural machinery manufacturer. Full-scale mass production began after the initial supply last year.

Busan Jugong, a leading company in the domestic casting industry, supplies automotive parts to domestic and international automakers and parts manufacturers. Representative products include pistons, crankshafts, steering knuckles, and oil pump housings for internal combustion engines. With the mass production of tractor parts, its customer base has expanded to include agricultural machinery companies.

While lightweighting is becoming increasingly important in automobiles, durability is crucial for agricultural machinery, which uses sturdy metal casting parts.

Busan Jugong plans to expand its agricultural machinery product lineup beyond tractors to include rice transplanters and combines. It has confirmed with related companies that there are items in agricultural machinery that can be produced by casting.

According to the Korea International Trade Association, last year, South Korea's tractor export volume surpassed $1 billion, reaching $1.089 billion (approximately 1.3 trillion KRW). Busan Jugong aims to supply parts to all three leading domestic agricultural machinery companies (LS Mtron, Kukje Machinery, and TYM) within this year.

A representative from Busan Jugong said, "The agricultural machinery company we started supplying parts to exports to over 50 countries worldwide, and we expect the order volume to gradually increase," adding, "We anticipate annual sales exceeding 10 billion KRW from a single product."

He continued, "Regarding production, we have established automated lines enabling multi-product manufacturing, and mold management and quality control are handled at automotive process levels," adding, "We will build trust through prompt and reliable responses in developing various agricultural machinery parts in the future."