Orient Jeonggong Starts Turnaround to Profitability Through Factory Innovation

by Jang Hyowon

Published 10 Nov.2021 07:13(KST)

[Asia Economy Reporter Jang Hyowon] Orient Precision announced that it is expected to achieve a turnaround to profitability through factory innovation.

According to Orient Precision on the 10th, the company appointed CEO Park Youngdong, a former executive director of Hyundai Motor's purchasing headquarters, in March last year and began factory innovation.

Exterior view of Orient Jeonggong Plant 3. / Photo by Orient Jeonggong

▲ By forming and operating a dedicated task force team (TFT), they introduced a proactive cost management system that began at least one year ago ▲ Improved logistics and inventory management systems through Factory Automation (FA) ▲ Successfully stabilized quality by improving defect rates through the introduction of a Quality Management System (QMS), currently achieving zero PPM.

In addition, the production process was redefined and optimized by product and process, and the company plans to continuously maintain and enhance the system.

These efforts have led to improved production efficiency and profitability structure, resulting in sales of 38.9 billion KRW in the first half of this year, an increase of about 81% compared to last year. This enabled a turnaround from three consecutive years of losses to profitability.

Furthermore, sales of aluminum parts, which are emerging as key materials for future automotive lightweight technology, surpassed last year’s annual performance as of the end of August.

In the business sector, the company is actively investing in research and development of parts in line with the global trends of eco-friendliness and the 4th industrial revolution. In fact, they succeeded in developing the core parts of the electronic transmission, SBW (Shift by Wire), a key component of the 4th industrial revolution, through a sintering process, enhancing performance and cost competitiveness.

Currently, SBW is expected to expand from an initial mass production of 500,000 units to 4 million units. To this end, the expansion of the third factory was completed last August, and production is about to begin.