Shinheung SEC Invests KRW100 Billionin EV Battery Parts Plant in USA

Shinheung SEC Co., Ltd., an electric vehicle (EV) battery parts maker, is entering the U.S. market directly. In order to respond to demand from the nation’s batt ery manufacturers expanding local production bases with the implementation of the Infl ation Reduction Act
(IRA), it plans to establish a factory in the United States.

Shinheung SEC decided to build a batt ery parts factory near Fort Wayne
Shinheung SEC decided to build a batt ery parts factory near Fort Wayne, the second biggest city in Indiana, USA. It secured a site and building of 20,000 pyeong and completed the establishment of a U.S. corporation.
As soon as the transfer of ownership of the building is completed, internal construction will begin, equipment will be brought in, and personnel will be hired in earnest. It has also secured a site that can be further expanded so that production capacity can be expanded if the customer demand increases in the future.
Shinheung SEC plans to invest more than 100 billion won in the construction of a factory in the USA, and automation facilities. The investment will be made sequentially over two years. The company aims to start operations in 2025.
Establishing a local plant is a strategy to respond to the expansion of electric vehicle and batt ery production in the United States. Demand for batt ery parts is growing as the establishment of joint ventures between battery makers and fi nished car makers is actively underway due to the implementation of the IRA in the United States.
Fort Wayne, where the Shinheung SEC plant will be built, is located an hour and 10 minutes by car from Kokomo, Indiana, where a joint venture plant with domestic batt ery manufacturers will be built.
Shinheung SEC expects to be able to establish a mass-production system the fastest among partners entering the U.S. market together as it purchases completed buildings and sets up factories.

Shinheung SEC mainly manufactures cap assemblies for small, medium, and large prismatic batt eries and current interrupting devices (CID) for small circular batteries. The cap assembly and current cut-off device are key parts that sever the current and discharge gas to the outside before the batt ery’s internal pressure rises and explodes. It is also producing cans, which are cases that contain batt ery contents.

Considering expanding factories in China and Hungary Shinheung SEC is also considering expanding factories in China and Hungary. This is because orders are fl ocking in due to the explosive growth of the electric vehicle market. Currently, it has production bases in Osan and Yangsan in Korea, as well as in China, Malaysia and Hungary. It is also preparing to produce next-generation cylindrical batt ery parts.
Growth is expected through capacity expansion. Shinheung SEC recorded sales of KRW 477.8 billion last year, up 30% from the previous year.

Hwang Man-yong, CEO of Shinheung SEC, remarked, “We decided to build a U.S. plant in response to the expansion of local production capacity for our customers, and we will strengthen the production

capacity of core parts and achieve continuous performance growth as the demand for batt eries increases at home and abroad.”

 
 
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