SMAC Secures Operating Funds for Overseas Subsidiaries... Strengthening Global Marketing

by Jang Hyowon

Published 02 Dec.2024 13:49(KST)

Updated 02 Dec.2024 14:13(KST)

SMAC Secures Operating Funds for Overseas Subsidiaries... Strengthening Global Marketing

SMEC, a specialized machine tool company, announced on the 29th that it has decided to provide debt guarantees for its subsidiaries in the United States and Europe. Accordingly, the US and European subsidiaries plan to secure large-scale operating funds and launch aggressive global marketing campaigns.

This debt guarantee involves SMEC providing payment guarantees of $10 million (approximately 13.9 billion KRW) for its US subsidiary and €5 million (approximately 7.4 billion KRW) for its European subsidiary. The guaranteed amount corresponds to 23.94% of the company’s equity capital of 106.8 billion KRW as of the end of last year. The debt guarantee period is from December 1, 2024, to November 30, 2025, with Citibank USA and Citibank Europe as the creditors.

Through this debt guarantee decision, SMEC will accelerate aggressive global marketing focused on the US and European markets. The US and European subsidiaries will secure approximately 21.3 billion KRW in large-scale funds and will intensify efforts to expand their global sales network, including acquiring new customers. In particular, in 2025, SMEC plans to participate in EMO, Europe’s largest machine tool exhibition, at more than twice the scale compared to the previous event. This follows SMEC achieving its highest-ever performance in the third quarter of this year, simultaneously realizing overseas sales growth and profitability improvement.

Additionally, last month SMEC signed a memorandum of understanding (MOU) regarding the acquisition of Hyundai Wia’s machine tool division, and currently, due diligence and fund execution are progressing smoothly. A company representative stated, “Once the acquisition of Hyundai Wia’s division is completed, SMEC’s technological capabilities and position in overseas markets will become even stronger.”

A SMEC representative emphasized, “Sales in the US and Europe are rapidly increasing. Through this debt guarantee, we will strengthen the global sales network of our overseas subsidiaries, and if the acquisition of Hyundai Wia’s machine tool division is finalized, our leap forward in the global market will accelerate even further.”