KAI wins $336 mn order to supply WTP to Airbus by 2030

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Korea Aerospace Industries (KAI), South Korea’s dominant aircraft manufacturer, has won a 380 billion won ($336 million) contract with Airbus of the United Kingdom to additionally supply A320 wing top panels (WTP) between 2026 and 2030, the company announced on recently. Its first order for this year is an extension of the previous contract that will end in 2025.

WTP is an essential part of an aircraft, with a size of 16 meters (m) in length and 3.5 m in width, and composed of the blade surface and main frame.

The A320 is the best-selling model with about 13,000 aircrafts ordered from customers around the world and about 7,400 of them in service. Amid the growing demand for the A320, KAI has increased WTP production for the A320 since it first signed the contract with Airbus in 2011 and WTP now accounts for 40 percent of its total sales to the A320.

KAI also plans to ramp up its efforts to further expand orders to meet the growing demand for the A320 and diversify its income sources by exploring new markets. It will seek Risk Sharing Partner (RSP) projects to attract new customers and expand its presence in Southeast Asia to promote Korea’s home-grown helicopter Surion, KAI said.

As of 2016, KAI reported 18 trillion won in order backlog after making aggressive forays into overseas market. It expects its order backlog to exceed 20 trillion won this year.

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Korea’s exports climb 11.2% on year in Jan, marking first double-digit growth in four years 66 •

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South Korea’s exports rose 11.2 percent to $40.3 billion in January from a year ago – the first double-digit growth in four years – thanks to a spike in mainstay memory chips and petrochemical products. Exports kept increasing momentum for the third consecutive month, the longest streak since April 2014.

Imports expanded 18.6 percent on year to $37.1 billion in January. The trade account recorded a surplus of $3.2 billion, maintaining black figures for the 60th straight month.

Exports of semiconductors reached a record high of $6.4 billion in January due to growing demand for high-capacity memory chips for mobile phones and PCs, an area in which Korea’s two chipmakers account for a half of global supplies. Petrochemical exports hit $3.5 billion, the biggest figure since December 2014 due to reduced costs and increased output capacity. Panel shipments grew 20.8 percent, the fastest pace since January 2013 owing to improved prices of liquid crystal displays and increasing application of organic lightemitting diode (OLED) for smaller panels.

By region, South Korea’s exports to China climbed 13.5 percent on year in January, marking the first double-digit growth in three years and five months. Exports also continued to grow to Vietnam, ASEAN, Japan, Europe, CIS and India. Exports to the Middle East turned positive.

In contrast, exports of shipbuilding, consumer electronics, wireless devices, automobiles and textiles remained sluggish.

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Kora’s global export ranking falls to 8th

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Korea’s export competitiveness is losing steam amid a global trade slowdown over the past two years,according to the World Trade Organization (WTO).

With the rise of protectionism, the United States possibly targeting Korea as a currency manipulator and China’s growing retaliation against Korea over the U.S. anti-missile defense battery, Korea’s exports are expected to face a further uphill struggle this year.

Korea dropped two notches to 8th place in export volume last year, with outbound shipments falling almost 6 percent to $495.5 billion. Korea fell behind Hong Kong and France.

This was the second annual decrease in a row, following an 8 percent dip in 2015, according to the Ministry of Trade, Industry and Energy.

The last time Korea experienced a second consecutive drop in exports was in 1957-1958 when they fell 9.7 percent and 25.9 percent, respectively.

Global trade among 71 economies also fell for two consecutive years. In 2016, global trade volume was $29.7 trillion, down 2.7 percent, following an 11.8 percent drop in 2015, the WTO noted. The lowest recorded trade figure worldwide was in 2010 when it was $28.2 trillion. The world economy fell for three years in a row from 1981-1983 following the second oil crisis in the late 1970s. The global slowdown has weighed on Korea’s export ranking, which fell from 6th among 71 countries in 2015. In 2009, Korea ranked 8th.

Although there are signs of the global economy recovering led by the United States, Korean exports are likely to face a slowdown in the latter half of this year amid inflation and protectionism.

Korean goods are increasingly exposed to risks associated with China’s diplomatic row with Korea over the U.S. Terminal High Altitude Area Defense, as well as the possibility of the United States designating the country as a currency manipulator this April, in line with the U.S. policy for a weaker dollar to support its exports.

“There is a chance that Korean exports will slow down in the latter half of this year more than the first half due to the trend of protectionism and uncertainties over the value of the won against the U.S. dollar,” said LG Economic Research Institute researcher Kang Jung-gu.

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Korea-US free trade ‘’mutually beneficial’’

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South Korea continues to profit from its bilateral trade with the United States, but its trade surpluses largely come from outbound shipments of intermediate goods needed by U.S. manufacturers to produce their own finished goods, making their trade both complementary and mutually beneficial, a report said recently.

According to the report from the Korea International Trade Association (KITA), intermediate products accounted for 46.3 percent of overall South Korean exports to the U.S. in 2015, when such goods accounted for only about 37 percent of the United States’ total imports.

Such a high ratio of intermediate goods may indicate that South Korea was shipping items mostly needed by the U.S., it noted. The report comes amid a move by the new U.S. administration to consider imposing what it calls border adjustment tax, citing its country’s chronic trade deficits with key trading nations, including South Korea.

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Asiana to add luxury image with new fleet, refurbishment

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South Korea’s full-service carrier Asiana Airlines Inc. will confidently confront the multiple challenges from domestic budget carriers and cheaper airlines from China and Middle East. This comes on top of higher oil prices and volatile foreign exchange rates, which has led to the enhancement of Asiana’s fleet with fuel-efficient aircraft and cost-saving efforts, according to its chief executive officer.

“This year will be a turning point for us to go offensive from defensive,” said Kim Soo-cheon during an interview with Maeil Business Newspaper recently.

The airliner is ready to adopt an aggressive posture and invest, having streamlined through restructuring over the past three years. Its first weaponry is the deployment of the A350-900, the latest product of French maker Airbus boasting lightness with its frame made 53% out of carbon composite material and in aerodynamic design to offer 20 percent to 25 percent better fuel efficiency than others in the same class. Industry experts estimate the average operating expense per seat could be reduced by 10 percent when fuel efficiency is improved by 20 percent.

The second largest air carrier in Korea would bring in the first four this year to run a fleet of 30 and deploy them on the longer-haul routes. At the same time the company would be refurbishing the business-class section of the flagship B777 aircraft tor differentiated look and service, according to the CEO.

Thanks to restructuring through sales of unprofitable assets and rationalization of routes, the company registered an operating profit of 257.0 billion won ($224.8 million) last year, the highest in five years on a consolidated basis. Net profit reached 54.3 billion won for for the whole of 2016. The company will focus on long-haul routes while short destinations are covered by its budget carriers Air Seoul and Air Busan, explained Kim. The company’s operating profit was boosted by 6.4 billion won by scrapping money-losing money-losing short-distance routes.

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Ssangyong Motor to roll out pickups in Saudi Arabia

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Ssangyong Motor Co., South Korean unit of India’s Mahindra & Mahindra Ltd., is venturing into the Middle East by granting a local fi rm a license to assemble and ship its vehicles in Saudi Arabia from 2020.

Ssangyong Motor said recently that it signed a product licensing agreement with Saudi National Automobile Manufacturing Co. (SNAM) in February to allow the Saudi fi rm to manufacture its new premium pickup truck codenamed Q200 in the country starting 2020. SNAM plans to boost the annual capacity to 25,000 units later. Ssangyong Motor expects the latest deal would benefi t its Korean suppliers as the deal would involve an auto cluster for tier 1 auto part suppliers in Jubail, an industrial city in Saudi Arabia.

Ssangyong Motor previously posted record revenue of 3.63 trillion won ($3.2 billion) last year with a dramatic turnaround for the fi rst time in nine years, mainly driven by upbeat sales of its fl agship compact sport utility vehicle (SUV) Tivoli in Korea. The automaker, however, suff ers from a setback overseas due to a lack of demand in emerging markets such as Russia and tough competition from Chinese rivals.

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Hyundai Heavy Industries manufactures 5,000 ship propellers in 31 years

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Hyundai Heavy Industries (HHI) has manufactured its 5,000th ship propeller after 31 years and six months since its fi rst production in August 1985.

HHI held a ceremony to mark the production of its 5,000th propeller measuring 10.6 meters in diameter and weighing 77 tons at its Ulsan headquarters on February 3. HHI explained that it took only 31 and a half years to manufacture 5,000 ship propellers, faster than its competitors in Germany and Japan that hav e been operating their businesses for 90 to 150 y ears.

HHI is the world’s top propeller manufacturer with a market share of 31% and produces over 200 propellers annually. It currently supplies its propellers to 34 shipyards worldwide.

HHI was able to reduce costs and time thanks to the process it developed in 2003, named the “Furan method.” “We are developing a new type of propeller made of composite materials that are 25% lighter and help improve sailing performance,” an HHI offi cial said. “We will continue to make eff orts to keep our standing in the global market with technology development and quality improvement.” The 5,000th propeller is scheduled to be installed on a 300,000 DWT crude carrier ordered from Thenamaris in Greece.

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INT’L FACTORY AUTOMATION SYSTEM SHOW 2017 to Kick Off

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An opportunity to catch up with the latest development trends in global automation precision equipment

The 13th International Factory Automation System Show 2017 will be held from June 13-16, over a four- period at Changwon Convention Center. Being held in Changwon, one of the largest exhibitions held outside the metropolitan area of Seoul, it has been a symbolic event representing the mecca of the high-tech industry of Korea.

Marking its 13th year, the Fair aims to increase the international competitiveness of the industry by boosting demand for the exportation of smart factories, automation equipment, facilities, and related equipment, exchanging information, and technology development. Every year, it serves as a venue for exchanging information on technology and markets among participants and searching for new business partners.

Organized by KOAMI and held by the Gyeongsangdam-do and Changwon-si, the exhibition is sponsored by some of the most representative companies and organizations in various industries in Korea. Other affiliated events such as seminars and lectures will also be held along with the event.

This year, as many as 165 exhibitors from 13 countries have signed up for the exhibition. Although there were more exhibitors of 184 from 18 countries last year, 380 booths are expected to be installed, remaining almost the same with 387 booths last year.

The event organizer is expecting to achieve last year’s outcome of 20,000 visitors and business meetings worth USD550 million (meetings worth USD500 million and deals worth USD 50 million) during the exhibition this year.

A total of nine themed exhibitions along with a special exhibition will be held displaying FA equipment focusing on innovative process management solutions, sensors and control equipment, network systems, designing and process analysis programs, and measuring instruments for smart factories. The exhibitions will also feature metal processing machinery, molding tools, hydraulic pressure equipment, and part materials to respond to the demands of the global market.

An export consultation session with vendor handlers overseas will also be held to satisfy the event’s aim to increase exports. For Korean companies to fi nd new buyers especially in countries like India and Japan with high demand for nuclear, chemical and plant equipment, vendor handlers and procurement managers from ten well-known international EPC companies have been invited to have one-on-one meetings with 60 Korean companies. Customized consultation sessions with 20 prospective buyers overseas recruited by the exhibitors will be held at individual booths.

“Information and communications technology (ICT) conversion, the key to change in the global manufacturing paradigm, is triggering the fourth industrial revolution,” an offi cial from the KOAMI said. “You’ll be able to see the trends in automation technology that is evolving with new technology such as cloud computing, big data, and Internet of things.”

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Representing Korea’s Machinery Industry

https://korean-machinery.com///inquiryThe Korea Association of Machinery Industry (KOAMI) was founded in 1969 in accordance with the Machinery Industry Promotion Act. Since its foundation, KOAMI has been a trusted bridge between the Korean government and machinery industry, contributing to the advancement of the Korean machinery industry. Today it continues to serve as an important organization representing the machinery industry in Korea.

With support from the government and the participation of member companies, KOAMI has brought tremendous achievements to the advancement of the industry; it has been part of the development of core technology, pioneering overseas markets, initiatives to increase the export of Korean machinery, and promoting the sharing of mutual interest among the members. Moreover, KOAMI provides machinery companies with professional services involving support to policymaking and research activities, technology development, and exportation in response to the government’s policies. It also provides them with useful information on the machinery industry and training.

Since its foundation, KOAMI has never stopped striving to develop the industry and played a significant role for the machinery industry to become the world’s eighth largest exporter. With its expertise accumulated and trust earned over the past 49 years, KOAMI will continue to dedicate itself to the advancement of the machinery industry in Korea. As a companion to the industry, it plans to continue providing the machinery industry with support so that it can drive growth and play its role as the largest exporter of machinery in Korea.

Business Areas
– Business to promote the machinery industry and members’ interests
– Support for the machinery industry to develop technology
– Business to promote machinery exhibitions, machinery, parts, and materials technology, exportation, and international cooperation
– Research and publication on promotion of the machinery industry
– Informatization of the machinery industry and creation of knowledge-based businesses
– Businesses required to nurture talents tailored to the region and industry
– Support related to quality guarantee and warranty of machinery, parts, and materials
– Projects to establish a foundation for nurturing cutting-edge molding businesses
– Advancement of machinery equipment and promotion of its exportation
– Support to issuance of certificates on design, test, and inspection for SMEs
– Collaboration between large enterprises and SMEs
– Projects on advancement of the machinery industry commissioned by the government
– Operation and rental of KOAMI’s properties

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Flexible disc couplings

https://korean-machinery.com///inquiry[INQ. NO. 1703M20] Established in 2000, Korea Coupling is a specialist as a powertransmission equipment manufacturer including shaft couplings (Taper Grid Couplings, Gear Couplings, Disc Couplings). It supplies high-quality products to various industries, such as steel, paper, chemical & cement mills. Its products are mainly used for hydraulic machineries, pumps, blower fans, conveyors, cranes & general power driven industrial equipment.
Korea Coupling prepared its competitive flexible disc couplings especially for overseas buyers, which have common surfaces for coupling pilot, alignment and field reborn. They have a unique jacking bolt feature for removing the center assembly. The company accomplished an export of US$5 million in 2011. Korea Coupling has participated in the “Beijing Coal & Mining Exhibition” in 2011, launching its drive to open the potentiality of China.
Under its management philosophy, by which it should serve a customer with the best products, it has been creating new markets domestically and internationally, by supplying the best-quality products. The company is fully committed to improving still further the standard of its products with continuous technical researches and quality controls.

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