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Daedong Gear secures KRW 183.6 billion worth of orders for core power transmission components used in electric vehicles

2024-01-25 | views 81

Daedong Gear secures KRW 183.6 billion worth of orders for core power transmission components used in electric vehicles


-. Company will supply “Output Shaft Sub Assembly” for Hyundai Motor Company’s new electric vehicle platform, from 2025 to 2036
-. Last year, in celebrating its 50th anniversary, the company expanded its business from power components used in internal combustion engines to critical parts used in the future mobility sector


On January 25, Daedong Gear Co., Ltd. (CEO: Noh Jae Eok), Daedong Group’s subsidiary specializing in powertrain products, announced that it recently secured a new exclusive order to supply “Output Shaft Sub Assembly” used on Hyundai Motor Company’s new electric vehicle platform. This Assembly is a core part of an electric vehicle drive shaft and is responsible for transmitting power from the drive motor to both wheels.


The contract - worth a total of KRW 183.6 billion, which is approximately 76% of Daedong Gear's annual sales revenue in 2022 - runs from 2025 to 2036. Here, each order is expected to count towards sales when the company receives an individual purchase order (PO). Daedong Gear plans to produce output shafts using a precision gear grinding technique engineered to reduce electric vehicle noise and supply them to Hyundai Motor Company.


The contract could very likely push Daedong Gear to expand its business in earnest from a company that supplies power transmission parts for cars, heavy equipment, and agricultural machinery powered by internal combustion engines to a company that supplies core parts for future means of mobility such as electric vehicles, personal mobility devices, and robots. In this regard, Daedong Gear looked into trends emerging in the global electric vehicles and mobility industries, and made the decision to venture into the future mobility sector in earnest last year, believing it could quickly secure the competitiveness it needs in the business of core electric vehicle parts. To do so, the company is hoping to leverage more than 50 years of experience in power transmission components used in internal combustion engines, and invest aggressively in Daedong Group’s other mobility and robot businesses, etc.

 

Daedong Gear headquarters in Sacheon, Gyeongsangnam-do


Founded in 1973, Daedong Gear (headquarters: Sacheon, Gyeongsangnam-do) continues to grow at a steady pace, supplying internal combustion engine power transmission parts for automobiles, heavy equipment, and agricultural equipment to Hyundai Motor Group/Kia, GM Korea, Hyundai Construction Equipment, HD/Doosan Infracore, and Daedong Group. The company’s cumulative sales in the third quarter of 2023 came in at KRW 218.7 billion, which means it grew roughly 32% from the KRW 166.1 billion it earned in sales in the same period last year. Also, in celebration of its 50th anniversary last year, Daedong Gear shared its vision to become a global leader in internal combustion and electric powertrains by internalizing future electric mobility technologies for electric vehicle modules and electric powertrains (electric motors, reducers, inverters, etc.).