Daegu Seongsin&Q to Invest 33 Billion KRW to Establish Electric Vehicle Parts Factory by Year-End

On the 12th, Daegu City signed a memorandum of understanding for an investment agreement with Seongsin&Q Co., Ltd. (CEO Kwak Han) at the Shingyeok Government Building to establish a new electric vehicle parts manufacturing plant within the Daegu National Industrial Complex.

Founded in 1991, Seongsin&Q Co., Ltd. is a company producing internal combustion engine automotive parts, including engine timing covers. The company plans to invest 33 billion KRW by the end of this year to build a second factory dedicated to producing electric vehicle parts such as battery pack extruded products and cooling pump housings on a 12,716㎡ (3,853 pyeong) site within the Daegu National Industrial Complex.

Lee Jong-hwa, Deputy Mayor for Economic Affairs of Daegu City (left in the photo), and Kwak Han, CEO of Sungshin&Q, are posing for a commemorative photo after signing a business agreement.

The second factory of Seongsin&Q Co., Ltd. will begin construction in August to respond to the rapidly increasing domestic and international orders for future vehicle parts, complete construction in December, and start operations from January 2024. Seongsin&Q plans to leverage this investment to become an automotive company with sales of 100 billion KRW by 2030.

Since its establishment in 1991, Seongsin&Q has grown steadily through continuous research and development. Notably, the company succeeded in technology development by participating in Daegu City's ‘Next-Generation Leading Technology Development Project’ in 2019. Starting mass production of electric vehicle battery pack parts, the company received large orders for electric vehicle parts from first-tier domestic and international partners this year, leading to the establishment of the dedicated factory. As a result, Seongsin&Q expects its 2024 sales to increase by 3 to 4 billion KRW compared to the previous year, with an additional approximately 12 billion KRW in sales expected from 2025 onward.

Since 2016, Daegu City has supported the ‘Future Mobility Leading Technology Development Project’ to facilitate the swift transition of local automotive companies to future vehicles. As a result, among the five nationwide approvals for future vehicle business restructuring, one is a local company, indicating that the transition to future vehicles among small and medium-sized enterprises is very active. Going forward, Daegu City plans to support the entire cycle of future vehicle transition for local companies through commercialization, market development, and workforce training.

There are 98 companies nationwide approved for future vehicle business restructuring, of which 19 are Daegu-based companies.

Kwak Han, CEO of Seongsin&Q Co., Ltd., stated, “Daegu continuously fosters the mobility industry and has a well-established production base and industry-academia cooperation ecosystem in related fields. We will contribute to revitalizing the local future mobility business through continuous technology development and diversification of our product portfolio related to electric vehicle parts.”

Lee Jong-hwa, Deputy Mayor for Economic Affairs of Daegu City, said, “We welcome Seongsin&Q’s investment in the new and expanded second factory dedicated to electric vehicle parts and expect it to play a significant role in Daegu’s leap to becoming a future mobility hub city.”

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