Bosch will inject $151 million into Korean business
Hermann Kaess, president of Robert Bosch Korea, said the company originally planned to invest 200 billion won, but the amount was reduced in response to a declining profitability ratio. Bosch Korea had sales of 2.03 trillion won last year.
“We have some profitability issues in the corporate ladder,” Kaess said yesterday at the company’s Daejeon plant. “But in line with Bosch’s global strategy, we are looking to keep our traditional core businesses strong while leveraging new opportunities for long-term growth.”
Bosch invested 60 billion won last year for gasoline direct injection production, and this year 150 billion will be spent to add a high pressure pump production line for fuel injection systems at its Daejeon plant, which is expected to create about 400 jobs by the end of the year. When completed, it will have a production capacity of 6 million fuel injection systems annually.
“Through the expansion at Daejeon, we will be able to provide our customers in Korea with the latest technology for powertrains in gasoline as well as diesel that will further reduce fuel consumption and emissions,” Kaess said.
The 54-year-old German executive said the company is looking to diversify its business here. Last month, Bosch and Daesung Heat-Pump, an affiliate of Daesung Industrial, signed a development and product distribution agreement to enter the thermotechnology business.
Kaess said Bosch Security Systems will expand its presence in Korea by launching new video surveillance, conference system and pro-sound business products.
The company is also working to strengthen its position in consumer goods. Last year, BSH (Bosch and Siemens Home Appliances) launched the capsule coffee machine Tassimo and other home appliances.
Kaess, who has led Bosch Korea since 2010, said the company will keep looking for business opportunities here. Last year, Hyundai Motor took over their auto electronics joint venture Kefico, but Bosh is considering various areas relating to the automotive business, particularly involving the Internet.
“We are looking at all opportunities,” he said. “Korea is one of the largest car-producing countries, and it is highly interesting for us to be here. I expect it [the Korean market] will be more important in the future because innovative companies like us are strong in highly efficient gasoline and diesel technologies.”
By Joo Kyung-don [firstname.lastname@example.org]