Manho Rope & Wire said on the 13th that it will invest 35 billion won to build a new research and development (R&D) center and headquarters, and pursue a transition into a technology-centered corporations and entry into new businesses.
Manho Rope & Wire plans to build a new R&D center with one basement level and five above-ground floors in Changwon. The investment is being pushed to pursue a convergence strategy that combines the robot, drone and automobile industries with the existing materials industry structure centered on steelmaking and wire rope.
A Manho Rope & Wire official said it is a core project to leap into a global corporations through forward and backward integration that encompasses software (SW) and hardware (HW).
In particular, Manho Rope & Wire plans to build a structure that simultaneously secures the software realm, such as robot controllers and drones, and the hardware realm, such as automobile parts and robot joints. Through this, it will expand its business portfolio from the existing materials industry to advanced manufacturing and future industries.
Manho Rope & Wire said it decided to act in response to technological catch-up by Chinese steelmakers and intensifying price competition. It judged that there are limits to maintaining competitiveness with a business focused only on general-purpose materials, making it essential to secure new growth engines through integration with related industries and process automation.
Manho Rope & Wire will combine future new businesses such as robot controllers, drones, automobiles and robot joints with the existing wire rope and steelmaking industry structure. It also plans to pursue technology development and production innovation simultaneously, centered on the R&D center.
In addition, it plans to build automation and smart manufacturing systems to achieve cost reduction, productivity improvement and quality competitiveness at the same time.
With this investment, more than about 50 new jobs are expected to be created, centered on research and development and production personnel. In particular, job growth is expected to focus on young technical workers.
A Manho Rope & Wire official said, If partner companies and related industries are included, an indirect employment effect of about 150 people is also expected.
Chief Executive Officer An Byung-du of Manho Rope & Wire said, This investment agreement is not a simple expansion of equipment but is intended to build a foundation for new businesses centered on AI robots and automobile parts, adding, We will transition into a technology-centered corporations to create a sustainable growth structure and leap into a global corporations based on super-gap technology.
Gyeongsangnam-do and Changwon said they expect the agreement to have positive ripple effects across the regional economy, including upgrading key industries, fostering advanced manufacturing industries and creating local jobs.