Jeil Electric Acquires Automotive Power Distribution Component Company Javes Korea Electronics

Jeil Electric, a leading domestic company in the smart distribution board sector, is expanding its reach beyond the domestic and international construction site distribution board markets to the global mobility distribution board market.

Jeil Electric Co., Ltd. (formerly Jeil Electric Industry) announced on the 29th that it will acquire Javes Korea Electronics, an automotive distribution system parts company. Jeil Electric completed the acquisition agreement for the management rights of Javes Korea Electronics after approving the establishment of a Special Purpose Company (SPC) at the board meeting on the 18th. The acquisition process is expected to be finalized around May 16.

Javes Korea Electronics was established in 1977. Based on its advanced technology, it has secured significant clients including domestic and international automakers and home appliance companies, including an American electric vehicle company, making it a company with promising growth potential. The company's main product is the “wiring harness,” an essential product that delivers electrical signals and power to various electronic devices and electrical components inside automobiles.

In particular, automotive wiring harnesses are key components of the vehicle’s distribution system, which functions as the nervous system of the car. They are used to connect the ECU (Electric Control Unit), which serves as the vehicle’s brain, as well as the powertrain, infotainment, autonomous driving, connectivity, and climate control systems. The automotive wiring harness market is rapidly growing amid trends such as the increasing electronic sophistication of internal combustion engine vehicles and the transition to electric vehicles.

A representative from Jeil Electric stated, “We decided to acquire Javes Korea after observing its superior market competitiveness secured through its Vietnam production base, which began full-scale operations in 2022, achieving rapid sales growth from 25.9 billion KRW in 2022 to 31.7 billion KRW in 2023, benefiting from the automotive industry's shift away from China. We aim to expand Jeil Electric’s core business areas, as the leading domestic company in smart distribution, from the domestic and US construction markets to the global mobility distribution market to secure future growth engines.”