Polaris Sewon begins initial supply of automotive HVAC parts to Peace Valeo joint venture... Full-scale diversification of sales channels

Polaris Sewon, a specialized company in automotive air conditioning parts, announced on the 22nd that it has secured PHC Valeo Thermal Systems, a joint venture with Valeo, as a new client and will actively diversify its sales channels.

Valeo is a global comprehensive automotive parts company with sales of 23 trillion KRW in 2023, ranking third in the automotive air conditioning systems sector. It operates a total of 175 manufacturing plants and 66 R&D centers across 29 countries worldwide.

Recently, to supply air conditioning systems to the domestic complete vehicle industry, PHC Group, which has had a partnership since 1988 through the joint venture Peace Valeo, established PHC Valeo Thermal Systems as a 50-50 joint venture. PHC Group is a core parts affiliate of Hyundai Motor Group, with combined affiliate sales reaching 3.4 trillion KRW.

After its establishment, the company won its first project for the Kia Tasman air conditioning system, selecting Polaris Sewon as a key partner and commencing initial mass production. Lee Dong-su, CEO of PHC Valeo Thermal Systems, and key executives visited Polaris Sewon’s headquarters to tour the production site and discuss mutual cooperation plans.

CEO Lee Dong-su stated, “For PHC Valeo Thermal Systems to succeed in the domestic air conditioning system business, coexistence with partners is paramount,” adding, “Our company will perform the first project stably through organic cooperation with Polaris Sewon and secure additional projects in the future.”

A company official said, “With the growth of the family large passenger car market, including eco-friendly vehicles and SUVs, the importance of air conditioning systems is also highlighted,” and added, “Having secured a leading client, we will strive to expand sales channels including increasing sales at Valeo headquarters and expand the eco-friendly vehicle thermal management system business, which is highly regarded for its growth potential.”

He continued, “To respond to the increasing demand for air conditioning parts, we have completed the third plant dedicated to welding and pipelines,” and said, “We expect performance growth through external growth by diversifying sales channels and expanding factories, as well as profitability improvement.”

Meanwhile, Polaris Sewon supplies air conditioning parts to end users in complete vehicle and electric vehicle manufacturing such as Hyundai Motor, Kia, GM, Ford, Tesla, Lucid Motors, and Rivian through its clients. Currently, it holds an order backlog worth 500 billion KRW and plans to expand its performance based on a stable financial structure.

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