DK Lock Establishes Joint Venture in the US... Expanding Supply to US Multinational Corporations

DK-Lok announced on the 25th that it has established a joint venture, DK-Lok America, Inc., with the US-based company Nudraulix. This joint venture was promoted with the goal of timely supply and technical support in response to the growing US market amid strengthening "country-first" regulations.

Nudraulix is described by the company as DK-Lok's North American regional hub distributor, possessing over 40 years of experience and professional expertise in the fluid connection systems field. According to the agreement, the two companies plan to expand cooperation in various areas including ▲establishing local production facilities ▲transferring product manufacturing technology ▲strengthening customer acquisition.

A DK-Lok representative stated, “The North American market is a key region for the company's growth, and we have been discussing local production due to favorable conditions in sectors such as oil & gas, natural gas commercial vehicles, and maintenance, repair, and operations (MRO). Through the establishment of this joint factory, we plan to strengthen strategic partnerships and expand sales by ensuring timely product supply.”

Previously, in May last year, DK-Lok obtained TUV SUD 3.1 certification for eco-friendly vehicle (CNG/NGV/FCEV) ORFS and LOK fittings from TUV SUD in the US and has been preparing for the North American natural gas vehicle business.

Globally, with environmental policy regulations imminent, alternative energy is gaining attention for reasons including eco-friendliness, economic efficiency, and ESG. In the US commercial vehicle transportation industry, demand from major customers such as Cummins, a supplier of CNG (Compressed Natural Gas) and RNG (Renewable Natural Gas) vehicle fuel supply system solutions, and Hexagon Agility continues to increase.

In particular, as demand for parts and service networks for natural gas vehicles continues to grow, it is expected that value-added creation in this area will contribute to the popularization of CNG and RNG vehicles.

According to local media (WORKTRUCK), Cummins has developed and unveiled the 2024 model next-generation natural gas engine (X15N). Cummins supplies the natural gas engines, Chevron supplies CNG and RNG fuels, and Walmart is reportedly promoting natural gas cooperation centered on pit stop stations at charging stations.

The industry expects demand to increase further due to stable growth. According to the global market research firm Grand View Research, “The global natural gas vehicle market demand was estimated at 29.79 million units in 2020, and a compound annual growth rate (CAGR) of 3.3% is expected from 2021 to 2028,” indicating steady growth.

Over the past three years, the North American market has seen a continuous increase in maintenance volumes and urgent short-term orders. Through role sharing with the joint venture, plans are in place to promote local production, timely supply, cost reduction, and productivity improvement.

Meanwhile, as of the first quarter of this year, 78% of DK-Lok’s total sales are exports. In 2015, the company established a joint venture in Russia, achieving market expansion by registering with the Russian state-owned oil and gas company Gazprom. In 2021, through a joint venture in Nigeria, DK-Lok has been participating in LNG plant projects and expanding supply chains in the African region.

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