MUNICH, Germany Wiring systems manufacturer Leoni AG (Nuremberg, Germany) has acquired a 50 percent stake in Korean company Daekyeung, one of the leading automotive wiring system vendors in Korea. The move gives Leoni access to the world's fifth-largest vehicle market.
Daekyeung serves customers in the automotive and utility vehicle industry including General Motors Daewoo Auto & Technology (GMDAT), SsangYong Motors and Volvo Construction Equipment. Already in 2007, Leoni and Daekyeung had signed a cooperation agreement on joint development projects for General Motors compact cars. The Leoni investment aims at bundling forces to acquire more orders in the increasingly important Korean automotive industry, Leoni said in a press release.
Daekyeung, headquartered in South Korean port Busan, employs about 1900 persons and runs production lines in China. The company focuses on wiring systems and cable looms for the automotive industry. In 2007, Daekeung achieved sales of about 70 million (about $105 million). No details were provided as to the investment sum.
In today's cars, the wiring system is typically the second heaviest single part after the motor. With increasingly complex electronics equipment in vehicles, wiring systems get in the center of system designers' interest.
In the recent years, Leoni has strengthened its position through several acquisitions, of which Valeo Connective Systems probably was the most remarkable one.