Hyundai Motor Group Supports Expansion of Smart Factories for Partners... Strengthening Win-Win Cooperation

Chung Euisun, Senior Vice Chairman of Hyundai Motor Group, was appointed chairman on the 14th, marking the full-scale launch of the third-generation management system of Hyundai Motor Group. Hyundai Motor Group, including Hyundai Motor and Hyundai Mobis, held an extraordinary board meeting that morning and approved the appointment of the new chairman Chung. Accordingly, Chairman Chung became the undisputed head of the group just 2 years and 1 month after his promotion to Senior Vice Chairman of the group in September 2018, and 7 months after becoming the chairman of Hyundai Motor's board in March this year. The photo shows the Hyundai Motor Group headquarters in Seocho-gu, Seoul on that day. Photo by Kim Hyunmin kimhyun81@

[Asia Economy Reporter Ki-min Lee] Hyundai Motor Group is expanding smart factories to promote cooperation and mutual growth with its partners.

On the 1st, Hyundai Motor Group announced that it will carry out a smart factory construction support project targeting a total of 180 partner companies this year, in collaboration with the Ministry of SMEs and Startups, the Automotive Parts Industry Promotion Foundation, the Smart Manufacturing Innovation Promotion Group, the Foundation for Large, Small and Medium Enterprises and Agriculture and Fisheries Cooperation, and the Korea Chamber of Commerce and Industry.

A smart factory is a factory that optimizes the production system by integrating information and communication technology (ICT) throughout the entire production process, from product planning to design, manufacturing, processing, distribution, and sales. Depending on the level of ICT utilization, it is classified into basic, intermediate 1, intermediate 2, and advanced stages.

To enhance the competitiveness of small and medium-sized enterprises, Hyundai Motor Group participated in the 'Large-Small Win-Win Smart Factory Distribution Expansion Project' promoted by the Ministry of SMEs and Startups, supporting a total of about 480 partner companies in 2019 and 2020 to build smart factories at the basic and intermediate stages with 10 billion KRW. According to Hyundai Motor Group, the 209 companies that participated last year showed an average improvement of about 30% in performance indicators such as quality and productivity enhancement, cost reduction, and delivery improvement, demonstrating the effectiveness of the project.

This year, support will be expanded to include the construction of advanced-stage smart factories, providing 5 billion KRW to a total of 180 companies. Hyundai Motor Group plans to apply systems such as ▲initial, intermediate, and final inspection systems ▲Fool-Proof System ▲LOT tracking management system ▲mold management system ▲quality verification system to basic-stage smart factories after conducting management diagnosis of companies together with smart factory experts.

For partner companies building intermediate and advanced-stage smart factories, systems such as ▲production process management system ▲enterprise resource planning system ▲supply chain management system ▲product lifecycle management system will be applied.

Following the voluntary win-win cooperation business agreement signed with the Ministry of SMEs and Startups in 2019, Hyundai Motor Group supported the self-payment portion of smart factory projects for future car parts partners last year and plans to fully support the self-payment again this year.

A Hyundai Motor Group official said, "We are pleased to contribute to securing the future competitiveness of our partners through the smart factory construction support project entering its third year this year," adding, "Hyundai Motor Group will continue various mutual growth activities for the growth and development of its partners."

Meanwhile, Hyundai Motor Group participated in the industrial innovation movement led by the Ministry of Trade, Industry and Energy from 2013 to 2017, supporting 1250 small and medium-sized enterprises with 25 billion KRW. Additionally, from 2015 to 2018, it helped build smart factories for 160 small and medium-sized enterprises in the Gwangju area by supporting 3.2 billion KRW in cooperation with the Gwangju Creative Economy Innovation Center.

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