[Power of Small and Strong Companies in Industrial Complexes] (Part 2) Building Smart Factories... Overcoming Recession with Electric Vehicle Parts

Gyeonggi Siheung National Industrial Complex A-One Tech
Precision Cutting Processing Specialist
Ambition to Independently Develop New Universal Machines
Capable of Automation Including Product Inspection

Various innovative efforts by small and medium-sized enterprises (SMEs) located in national industrial complexes managed by the Korea Industrial Complex Corporation are proving effective despite the economic downturn caused by the novel coronavirus disease (COVID-19). This article introduces their efforts to expand sales channels for new market development, research and development of new products, and process improvements, showcasing their continued competitiveness and growth momentum in two parts.

[Asia Economy Reporter Kim Daeseop] A1 Tech, a precision machining specialist located in Jeongwang-dong, Siheung-si, Gyeonggi Province. CEO Lim Youngsoo of A1 Tech said, "This year, we want to develop a general-purpose machine needed by cutting machining companies ourselves and introduce it to the global market," adding, "Since the initial investment cost is high, we plan to develop it with government policy funds."

The company produces automotive parts used in electric vehicle motors, electronic parking brakes, steering devices, actuators, and gearboxes through precision cutting machining technology accumulated over 40 years. It is a secondary supplier to Hyundai Kia Motors. Despite management difficulties caused by the impact of COVID-19, the company is overcoming the crisis through production process improvements and a positive drive toward new work.

The new general-purpose machine to be developed through research and development (R&D) is designed to enable cutting machining work to be performed quickly and conveniently, thereby further improving productivity. Currently, during the use of cutting machining machine tools, chips (metal shavings) are manually removed by workers, and the processing space is large, causing inconvenience. Also, inspection and packaging of cutting machined products are mainly done manually.

CEO Lim Youngsoo emphasized, "We want to create an integrated machine capable of unmanned operation for chip cleaning, product inspection, packaging, and other work processes," adding, "The positive drive toward new work is the driving force for continuous growth and creative management."

A1 Tech's company motto is "Create new value through continuous execution with firm determination." The company has been focusing on building smart factories, including automation and unmanned systems, for the past three years. Although changing long-established production methods is not easy, manufacturing innovation is being promoted through education and awareness improvement for on-site personnel.

Lim Young-su, CEO of A1 Tech

CEO Lim said, "Productivity has improved by about 5-10% compared to before starting the smart factory construction," adding, "It will take more time and there will be many difficulties until the smart factory construction is completed, but we will continue to push forward."

A1 Tech was established in 1977 in Seongsu-dong, Seoul, under the name Daeyoung Industrial Company and moved its factory to Bucheon, Gyeonggi Province, in 1990. In 1999, it established a new factory in Siheung, Gyeonggi, and changed its name to A1 Tech in 2001. As a tenant of the Banwol-Sihwa National Industrial Complex managed by the Korea Industrial Complex Corporation, it was selected as an excellent member company of the Gyeonggi Regional Headquarters Automotive Parts Mini Cluster (MC).

Since its founding, A1 Tech has consistently practiced quality improvement, process enhancement, and on-time delivery. It has maintained excellent quality while securing cost competitiveness.

CEO Lim said, "Many secondary suppliers who supplied parts to first-tier finished vehicle suppliers like our company at the beginning of our founding closed their factories due to increased manufacturing and labor costs, but we have continued our business by securing cost competitiveness and making profits through accumulated know-how."

A1 Tech recorded sales of 6.9 billion KRW last year. Although it initially set mid- to long-term sales targets of 10 billion KRW this year, 18 billion KRW in 2024, and 30 billion KRW in 2027, the impact of COVID-19 remains a variable.

CEO Lim said, "Although difficulties increased due to COVID-19, we were able to reduce the sales decline rate by about half compared to general parts companies thanks to the supply of electric vehicle parts," adding, "However, given the uncertainty of the future economy due to COVID-19, revising sales targets seems inevitable."

He also emphasized, "We prioritize building optimized smart factories and top-quality management recognized by customers so that we can grow without blaming the economic downturn."

This content was produced with the assistance of AI translation services.