Machine-tool manufacturer Hiwin Technologies Corp (上銀科技) yesterday said it plans to invest about US$3 million in setting up a subsidiary in South Korea to serve customers in the automotive and electronics industries.
The company is seeking an appropriate location in South Korea, Leo Liao (廖克皇), a senior manager at Hiwin, said by telephone.
He said the US$3 million does not include future investment in a production line at the subsidiary.
“By establishing a subsidiary in South Korea, we will be closer to Samsung Group,” Liao said, adding that Samsung is one of the company’s main customers.
Hiwin also plans to invest a similar amount in establishing a subsidiary in Singapore by the end of next month as parts of efforts to expand its ASEAN footprint, Liao said.
The firm currently has subsidiaries in five European countries, Japan and the US.
Asia accounted for 58 percent of Hiwin’s total sales of NT$12.37 billion (US$413.2 million) last year, making the region its biggest revenue source, according to a May 24 report by Capital Securities Corp (群益證券).
Europe accounted for 22 percent of sales, Taiwan 14 percent and the US 6 percent, the report said.
In the first half of the year, Hiwin posted NT$5.18 billion in revenue, down 18.35 percent from NT$6.34 billion in the same period a year earlier, according to its filing to the Taiwan Stock Exchange.