Bosch commits $178.7 million to South Korean expansion
The German supplier will expand its South Korean operations with a $178.7 million investment through 2013, adding 300 jobs and focusing on new automotive technologies.
Bosch will invest $178.7 million in its South Korean operations by 2013, expanding production capacity and creating 300 new jobs as the company deepens its commitment to the country’s automotive sector.
The investment will be used to expand Bosch’s existing manufacturing footprint in South Korea, where the company runs four subsidiaries: Bosch Electrical Drives, ETAS Korea, Bosch Rexroth Korea, and Robert Bosch Korea. Bosch also maintains joint ventures with local supplier Doowon Precision Industry. The expansion is expected to cover both automotive parts and industrial equipment, with a particular emphasis on developing direct gasoline injection technology for future vehicles.
Focus on automotive technology and local growth
Bosch’s South Korean business units supply a range of products, including security systems, automotive components and industrial machinery. In 2011, Bosch reported profits of 2.5 trillion won from its Korean operations, up 14 percent from the previous year. The growth has encouraged the company to broaden its local investment, with plans to develop new Internet-based industrial systems as part of its longer-term strategy.
The addition of 300 jobs will support research and development, particularly in direct gasoline injection systems. Bosch’s decision to expand comes shortly after it sold its stake in KEFICO Corp, a joint venture with Hyundai. Hyundai now fully owns KEFICO, but Bosch will continue to supply parts to the Korean manufacturer independently. The new investment is not expected to affect Bosch’s ongoing business with Hyundai or other local automakers.
Context: Bosch’s global investment strategy
The South Korean expansion forms part of a broader pattern of investment by Bosch in key automotive markets. In 2011, the company invested $200 million in North America, with a further $350 million planned for plant expansion and renovation in 2012. The focus remains on supporting growth in automotive and industrial sectors through localised production and technology development.
Bosch’s confidence in the South Korean market reflects the country’s position as a major automotive manufacturing hub in Asia. The supplier’s commitment to new technology and local employment is expected to strengthen its relationships with Korean automakers and support its regional growth objectives.
