Hivac (HIVAC) makes a new investment in manufacturing facilities for key components of future vehicles.

HIVAC Makes New Investment in Manufacturing Facility for Future Vehicle Parts

[JobPost] Reporter Koo Woong – On August 13th at 11:30 AM, Daegu City signed an investment agreement with HIVAC Co., Ltd. (CEO Park Jae-yong) for the establishment of a manufacturing plant for future eco-friendly vehicle parts at Daegu National Industrial Complex (Phase 2).

Founded in 2007, Highbak is a specialized company in producing thermal management and air conditioning components for future eco-friendly vehicles, such as electric and hybrid vehicles. HIVAC plans to invest 50.1 billion KRW to build a manufacturing plant on a 24,453㎡ (approximately 7,397 pyeong) site within Daegu National Industrial Complex (Phase 2).

Based on its patented technology in vacuum brazing (a metal joining technique in a vacuum environment), HIVAC transitioned in 2018 to become a specialized manufacturer of heat exchangers for future eco-friendly vehicles. Currently, HIVAC’s products are installed in major Hyundai and Kia vehicle models.

With the recent increase in orders following the launch of new future eco-friendly vehicle models, HIVAC decided to invest in the construction of the new manufacturing facility.

The new manufacturing facility is expected to break ground in October this year and be completed by April next year. Once operational, the plant aims to increase revenue from 17.7 billion KRW in 2023 to around 120 billion KRW by 2028. If this target is achieved, HIVAC expects to experience rapid growth with an annual average growth rate (CAGR) exceeding 50% over the next five years.

In particular, HIVAC’s integrated thermal management system components will be applied to Kia’s newly released EV3 model this year, as well as the upcoming EV4 model scheduled for release next year. The production volume is expected to increase in line with market demand.

Daegu City has been strengthening its position as a leading city in the future mobility industry by attracting large-scale investments from future vehicle companies through initiatives such as the activation of mobility motor materials specialized districts and support for the transition to future vehicle technologies.

Notably, HIVAC’s investment is the first new investment following the designation of Daegu National Industrial Complex, Suseong Alpha City, and Kumho Waterpolis as Opportunity Development Special Zones in June. The investment will benefit from incentives such as tax advantages, regulatory exceptions, and additional local investment promotion subsidies.

Daegu City expects that these investment incentives from the Opportunity Development Special Zones will continue to attract more investments from companies in the future.

Park Jae-yong, CEO of HIVAC, said, “Based on our core production technologies, HIVAC is growing rapidly in the field of heat exchangers for future eco-friendly vehicles. I hope this investment will be a stepping stone for Highbak to grow into a larger company, and we will do our best to become a representative company of Daegu, the future mobility city.”

Daegu Mayor Hong Jun-pyo stated, “Daegu is transforming into the city with the best future mobility industry competitiveness in the country, and we will provide full policy support to help future mobility companies continue to grow in Daegu.”

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