[Click eStock] "DIC, Hyundai Motor Electric Vehicle Dedicated Plant Early Completion Order Momentum Up"
KB Securities analyzed on the 21st that DIC's order momentum is gradually increasing due to the early completion of Hyundai Motor Group's electric vehicle-only factory, 'Metaplant America (HMGMA)'.
On the 19th, Hyundai Motor Group announced that HMGMA, the world's first electric vehicle (EV) dedicated factory under construction in Georgia, USA, will begin trial production as early as April next year. Hyundai Motor Group informed local officials including the Georgia state government about the construction status and plans of HMGMA, and plans to officially launch electric vehicles in January 2025. The annual production capacity (CAPA) of HMGMA is expected to expand from 300,000 units to up to 500,000 units.
Hyungkyum Kim, a researcher at KB Securities, said, "DIC is currently making facility investments for manufacturing EV parts in the US through its wholly owned subsidiary, Daeil USA," adding, "It proactively secured a 50,000-pyeong site within an industrial complex in Kentucky, USA, and completed an 8,000-pyeong factory building in 2021, ahead of any other parts company in Hyundai's value chain."
He continued, "The ongoing facility investment is estimated to reach a final scale of 100 billion KRW in line with the order volume from HMGMA," and stated, "The business is expected to expand to produce finished reducers and EV drive modules, as well as two-stage reducers jointly developed with Hyundai Transys."
Researcher Kim explained that due to the Inflation Reduction Act (IRA) tax benefits, global automakers are continuing to expand their investments in the US. Since DIC supplies reducer parts to Tesla, GM, Volkswagen, and others, the expansion of US-directed CAPA is expected to lead to increased supply to these automakers as well.
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Kim said, "The aggressive expansion of US investments by global automakers will be a great opportunity for automotive parts companies operating in the US," and added, "It is necessary to pay attention to DIC, which is expected to have order momentum due to its proactive entry into the US market."
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