Hankook & Company Strengthens Global Reach with Hanon Acquisition

Hankook & Company Group Completes Acquisition of Hanon Systems

Hankook & Company Group has achieved a significant milestone by completing the acquisition of Hanon Systems, recognized as the world’s second-largest automotive thermal management solutions provider. With this strategic move, the Group has successfully expanded its core portfolios in tires, batteries, and thermal management, redefining its position in the automotive sector.

Investment Journey Over a Decade

This acquisition marks a pivotal moment in the journey of Hankook & Company Group, as it celebrates ten years since it first acquired a 19.4% stake in Hanon Systems in 2014. Through strategic investments, including the recent acquisition of 144,962,552 new shares and an additional 122,774,000 shares, the Group has solidified its status as the majority shareholder with a 54.77% stake. This transformation of Hanon Systems into a subsidiary under Korean corporate law exemplifies the Group's commitment to growth and innovation.

Strengthening Automotive Leadership

The acquisition not only enhances Hankook & Company’s asset portfolio to approximately KRW 27 trillion but also positions it among Korea’s top 30 corporations based on net assets. Hanon Systems, originally established as Halla Climate Control in 1986, has evolved into a leading provider of automotive thermal and energy management solutions. The rebranding as Hanon Systems in 2015, following substantial ownership by Hankook Tire & Technology, reflects the ongoing evolution and adaptability of the company.

Technological Advancements and Future Potential

By integrating Hanon Systems, the Group is well-positioned to lead in cutting-edge automotive technologies. Hanon’s expertise in thermal energy management systems is vital for the performance of electric vehicle (EV) batteries, showcasing the growing importance of thermal management in enhancing energy efficiency and safety in automotive technologies. Through this merger, Hankook & Company aims to solidify its status as a high-tech leader in the automotive arena.

Maximizing Synergies for Greater Impact

Hankook & Company Group's strategy emphasizes maximizing synergies across its operational framework. This involves leveraging technology and resources from both parties to enhance operational efficiency and streamline supply chain management. The Group is determined to capitalize on its established global sales network to reinforce its position in the market.

Leadership and Vision for the Future

The appointment of Soo Il Lee as the new CEO of Hanon Systems is a strategic move designed to ensure stable integration and improved financial performance. With over 37 years of experience in Hankook Tire, Mr. Lee has been instrumental in various roles, ranging from marketing to international operations. His leadership will play a critical role in aligning the corporate culture and operational strategies between the two companies.

A representative from Hankook & Company emphasized the importance of this acquisition, stating, "This landmark deal completes our core mobility portfolio of tires, batteries, and thermal management, positioning us as a global high-tech leader." This statement underscores the Group's ambition to harness the collective expertise and resources of Hanon Systems to achieve unprecedented growth in the evolving automotive landscape.

Frequently Asked Questions

What strategic benefits does the acquisition of Hanon Systems offer?

The acquisition allows Hankook & Company to enhance its technological capabilities, thereby strengthening its position in the automotive sector with a diversified portfolio.

How does this acquisition impact the market position of Hankook & Company?

This acquisition elevates Hankook & Company to a top-tier corporation, expanding its asset base and market influence significantly.

Who is the new CEO of Hanon Systems?

Soo Il Lee has been appointed as the CEO, bringing extensive experience from his long career with Hankook Tire to lead the integration process.

What role does thermal management play in the automotive industry?

Thermal management is crucial for optimizing energy efficiency, safety, and performance in automotive systems, especially for electric vehicles.

What is the future vision for Hankook & Company after this acquisition?

The Group aims to lead in the future mobility era, focusing on innovation, synergy creation, and enhancing operational capabilities to drive sustainable growth.

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