Construction Begins in October, Completion in April Next Year
Revenue to Grow to 120 Billion Won by 2028
On the morning of the 13th at 11:30 AM, Daegu Metropolitan City signed an investment agreement with Highvac Co., Ltd. (CEO Park Jaeyong) at the Sanggyeok office of Daegu City Hall for the establishment of a 'Future Eco-Friendly Vehicle Parts Manufacturing Plant.'
Founded in 2007, Highvac Co., Ltd. is a specialized manufacturer of thermal management and air conditioning parts for future eco-friendly vehicles such as electric and hybrid cars. The company plans to invest 50.1 billion KRW to build a future vehicle parts manufacturing plant on a 24,453 square meter (7,397 pyeong) site within the Daegu National Industrial Complex (Phase 2).
Jaeyong Park, CEO of HighPark (right), signed an investment agreement with Hong Junpyo, Mayor of Daegu, to establish a future car parts manufacturing plant.
Based on its patented technology in the field of vacuum brazing, Highvac Co., Ltd. shifted its business in 2018 to specialize in manufacturing heat exchangers for future eco-friendly vehicles. Currently, Highvac's products are installed in major models of Hyundai and Kia vehicles.
With the recent launch of new models of future eco-friendly vehicles and the resulting increase in orders, the company decided to invest in establishing a new manufacturing plant.
The manufacturing facility to be built in Daegu National Industrial Complex (Phase 2) is expected to break ground as early as October this year and be completed by April next year. The plant will begin operations immediately upon completion, aiming to grow its sales from 17.7 billion KRW in 2023 to approximately 120 billion KRW by 2028. If this target is achieved, Highvac Co., Ltd. expects to achieve a rapid annual average growth rate (CAGR) of over 50% over the next five years.
In particular, Highvac's integrated thermal management system components are scheduled to be applied to Kia's EV3, which was released this year, as well as the EV4, set to be launched next year. Accordingly, production volume is expected to further increase in response to market demand.
Daegu City has been solidifying its position as a leading city in the future mobility industry by revitalizing specialized clusters for mobility motor materials and components and strengthening support for the transition to future vehicles, thereby attracting large-scale investments from future mobility companies.
Notably, this investment by Highvac Co., Ltd. is the first new investment case since Daegu National Industrial Complex, Suseong Alpha City, and Geumho Waterpolis were designated as Opportunity Development Zones in June. The investment will be eligible for incentives such as tax benefits, regulatory exemptions, and additional local investment promotion subsidies.
Daegu City expects that, based on these investment incentives in the Opportunity Development Zones, corporate investments will continue to increase in the future.
Park Jaeyong, CEO of Highvac Co., Ltd., stated, "Highvac is rapidly growing in the field of heat exchangers for future eco-friendly vehicles based on our core production technologies. We hope this investment will serve as a stepping stone for Highvac to grow into a larger company, and we will do our best to become a leading company representing Daegu, the future mobility city."
Hong Joonpyo, Mayor of Daegu, said, "Daegu is currently transforming into a city with the nation's top competitiveness in the future mobility industry," and added, "We will spare no policy support so that future mobility companies can further grow in Daegu."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
