Hyundai Mobis to spend $1.13 bil on hydrogen fuel cell expansion Move to proactively respond to growing hydrogen fuel cell market
Translated by Ryu Ho-joung 공개 2021-08-25 10:33:22
이 기사는 2021년 08월 25일 08:08 thebell 에 표출된 기사입니다.
Hyundai Mobis, the auto parts arm of South Korea’s Hyundai Motor Group, has announced a plan to spend more than 1.3 trillion won ($1.13 billion) on capital expenditure over the next four years as it steps up efforts to increase its capacity to produce hydrogen fuel cells.The company’s board of directors approved last Friday to invest 1.3216 trillion won by the end of 2025 to build two new hydrogen fuel cell plants, according to a regulatory filing. The decision is to enhance its competitiveness in the hydrogen fuel cell market and increase its capacity for mass production, the company said.
The factories will be built in industrial complexes in Incheon and Ulsan. The constructions will start later this year with a target to be completed in 2023. The new plant in Incheon will produce hydrogen fuel cell stacks, while the other in Ulsan will produce hydrogen fuel cell systems.
The 1.3216 trillion won capex budget represents more than 80% of the company’s annual cash flow from operations. Hyundai Mobis reported operating cash flow of 1.52 trillion won in 2020 and 1.64 trillion won in 2019 on a non-consolidated basis.
The company has yet to reveal financing plans, but its cash reserves seem to be sufficient to cover the investment. Hyundai Mobis had cash and cash reserves of 633 billion won on a non-consolidated basis and 4 trillion won on a consolidated basis at the end of June.
Hyundai Mobis currently produces hydrogen fuel cells at its facility in Chungju, North Chungcheong Province. They are used in vehicles made by Hyundai Motor and the auto parts supplier’s other customers.
The hydrogen fuel cell market has grown rapidly in recent years, with the competition among industry players getting tougher. According to data from SNE Research, Hyundai Motor had the largest market share of 51.7% in the first half of 2021, followed by Toyota with 40.9%. More than 9,100 hydrogen fuel cell-powered vehicles were sold globally in the same period, up 122.6% year-on-year.
Hyundai Motor has been expanding its hydrogen business to include hydrogen fuel cell buses and hydrogen fuel cell trucks. The automaker succeeded in mass-producing hydrogen fuel cell trucks and started to export them to Switzerland in 2020.
“We decided to make the large-scale investment as the hydrogen fuel cell market is expected to grow faster going forward,” said a Hyundai Mobis representative.
Hyundai Motor Group earlier this year established a facility in Guangzhou, China, to produce hydrogen fuel cell systems. The entity, called HTWO, is the South Korean automotive conglomerate’s first overseas hydrogen fuel cell systems plant. Hyundai Mobis invested 15.2 billion won in HTWO to own a 15% stake. (Reporting by Doung Yang)
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