There are concerns that the massive fire at Safety Industry, an auto parts company in Daejeon, could disrupt Hyundai Motor Group's finished-vehicle production.
According to the industry on the 23rd, Safety Industry's annual engine valve output exceeds 7,000 units, and most of them were reportedly supplied to Hyundai Motor and Kia.
Founded in 1953, Safety Industry is a company that manufactures and sells engine valves for automobiles and ships. On the 20th, a massive fire at its factory in Daedeok District, Daejeon, left 14 dead and 60 injured. Production is currently fully suspended.
Engine valves are key auto parts that control the intake of air and fuel into the engine cylinders and the discharge of exhaust gases.
In the wake of the Safety Industry fire, there is an outlook that Hyundai Motor and Kia could face difficulties producing finished vehicles. Hyundai Motor and Kia are known to have sourced engine valves from a small number of partners, including Safety Industry.
In response, Hyundai Motor and Kia are checking engine valve inventory by model and searching for alternative partners. A Hyundai Motor and Kia official said, "We have a certain level of inventory and are consulting with other companies to prevent production disruptions."