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Hanon Systems Expands Compressor Operations in China to Support Business Growth
DALIAN, China, Dec. 15, 2017 – Global automotive supplier Hanon Systems (KS:018880) is today announcing it has signed an investment agreement with the Dalian municipal government in China to expand its automotive compressor operations to support business growth in the China market.
This agreement secures active government support and grants permission for the company to invest in the construction of a third plant in Dalian, which will increase the total site space to more than 105,000 square feet (98,000 square meters).
A signing ceremony commemorating the agreement was held in Dalian, Jinshui District, which was attended by Dalian plant leadership, the Dalian Development Administration Committee and Chinese government officials of the Economic and Technological Development Zone. The ceremony was preceded by a memorandum of understanding (MOU), which was established in June at the World Economic Forum (WEF) between Hanon Systems and the Dalian Development Zone Investment Promotion Bureau.
“We are pleased to receive this formal approval to invest and expand our Dalian operations, which is critical to support our business growth with local China automakers and global vehicle manufacturers operating in China,” said In-Young Lee, president and chief executive officer of Hanon Systems. “We appreciate this support from the China government, and from our customers in terms of trust in our company and the innovative compressor solutions that Hanon Systems offers to the market.”
Established in 2004, the Hanon Systems Dalian plant produces electric, and fixed and variable swashplate compressors for automotive applications. The plant first expanded its operations in 2011, and today produces 2.7 million compressors annually. It also is the largest Korean company in terms of sales in the Dalian area in China.