Daedong Gear Signs MOU for Defense Business Cooperation with Ablemax
Daedong Gear Signs MOU for Defense Business Cooperation with Ablemax
- Daedong Gear and Ablemax sign a strategic business agreement to pioneer and expand into the defense market
- Daedong Gear establishes a foothold for entry into the defense sector, driving business diversification
- Seo Jong-hwan, CEO of Daedong Gear, “This agreement represents a new growth opportunity and will strengthen our competitiveness both domestically and internationally”
Daedong Gear Co., Ltd. (CEO JongHwan Suh), Daedong Group’s subsidiary specializing in powertrains, announced on April 9 that it has signed a strategic memorandum of understanding (MOU) for defense business cooperation with Ablemax (CEO Park Jeong-hyeok), a company specializing in total computer-aided engineering (CAE)[i] solutions.
The signing ceremony got underway on April 3 at Daedong Gear in Sacheon-si, Gyeongsangnam-do, and was attended by JongHwan Suh, CEO of Daedong Gear, Kim Hyeong-il, Head of Business Division at Ablemax, and other key representatives from both companies. Under this new agreement, Daedong Gear will produce gears, shafts, reducers, and transmissions required for defense products by incorporating Ablemax’s Condition-Based Maintenance (CBM)[ii] technology.
Through this partnership, Daedong Gear secures a foothold for entry into the defense market via Ablemax, while Ablemax enhances its competitiveness by combining its advanced software with Daedong Gear’s high-quality core components. The two companies plan to actively pursue bids for government projects and contracts with domestic defense firms by sharing market information and conducting joint marketing activities.
This agreement is expected to mark a significant turning point, as it represents Daedong Gear’s first entry into the defense industry since its founding. Last year, Daedong Gear secured contracts worth approximately KRW 1.4 trillion and expanded its portfolio from internal combustion power transmission components to electric powertrains. Building on this agreement, the company plans to actively explore and pursue opportunities in the defense sector, further accelerating its business diversification efforts.
JongHwan Suh, CEO of Daedong Gear, stated, “We will strive to create new value in the defense sector by combining Daedong Gear’s technological capabilities with Ablemax’s innovative solutions. We see this business agreement as a new growth opportunity, and we will continue to strengthen our competitiveness at home and abroad through ongoing technological innovation and business diversification.”
Meanwhile, Ablemax, which signed the MOU with Daedong Gear, operates across a wide range of industries, including aerospace, renewable energy, plant engineering, automotive, defense, rail, and shipbuilding. The company is building an integrated platform based on computer-aided engineering (CAE) technology, AI-based big data analysis and prediction solutions, and systems engineering expertise. Through this approach, Ablemax not only supplies and develops CAE and AI-based software in-house, but also provides a wide range of technical services, including engineering services, specialized consulting, and participation in national projects, in the form of an integrated platform.
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[i] CAE (Computer-Aided Engineering) technology refers to the use of computer software and simulation tools to support engineering tasks such as product design, analysis, and optimization. CAE enables engineers to predict and analyze performance in a virtual environment before manufacturing actual products. By allowing various variables to be tested and optimized prior to product design, CAE offers advantages in cost reduction, design optimization, and risk mitigation.
[ii] CBM (Condition-Based Maintenance) technology is a maintenance method based on the condition of equipment. This technology monitors and analyzes real-time data from equipment to perform maintenance before a failure occurs, which optimizes equipment lifespan and reduces maintenance costs.