Hansol Group's electric and electronics components company Hansol Technics(004710) said on the 13th it will establish a subsidiary in Mexico to target the North American automotive electronics market. The strategy is to expand its overseas production system, currently centered in Asia, to North America and to specialize functions by production base to enhance manufacturing competitiveness and profitability.
North America is one of the world's largest auto markets, with about 16 million vehicles sold, and demand for local sourcing of automotive electronic components is steadily increasing.
Hansol Technics plans to build Mexico as its North American production base to improve customer responsiveness and strengthen competitiveness in its automotive electronics business. The Mexican subsidiary will primarily produce automotive electronic components such as electronic transmission units, interior and exterior LEDs, and wireless charging modules. Based on proximity to major North American customers, it will serve as a key production base that improves logistics efficiency and strengthens supply responsiveness.
Hansol Technics will also push to specialize its Asian production bases by function. It will consolidate production of TV power boards at its Ho Chi Minh City, Vietnam subsidiary and operate its Thailand subsidiary as a dedicated home appliance components production base, reorganizing the roles of each production site to improve operating efficiency and manufacturing competitiveness.
A Hansol Technics official said, "This global realignment of production bases is part of a strategy to optimize production functions by region and improve customer responsiveness," adding, "We will continue to raise production efficiency while strengthening competitiveness around high-growth businesses such as automotive electronics and semiconductors."