Seoyon E-Hwa, a company listed on the Korea Composite Stock Price Index (KOSPI), has secured a lucrative contract from American electric vehicle leader, Tesla.
The order, expected to be around 300 billion South Korean won ($227 million USD), involves the supply of A, B, and C pillar parts for Tesla’s upcoming Cybertruck, reports Maekyung (via @Tslachan).
Seoyon E-Hwa recently inked a three-year deal to supply these integral structural components. Pillars connect the body and roof of a vehicle and are named A, B, and C depending on their positioning from front to back of the vehicle. The company has secured orders for all three types of pillars, with the parts contract extending until 2028.
The South Korean company has rented a factory in Monterrey, Mexico, with a 13 billion won budget ($9.8 million USD) to manufacture these Cybertruck pillar components. The company is set to send workers next month to Mexico to start production of the parts.
Seoyon E-Hwa, primarily a vendor for Hyundai Motor Company, is a specialized manufacturer of interior and exterior automobile materials. The company generates over 90% of its sales from Hyundai Motor and Kia. In the first quarter, it recorded consolidated sales of KRW 2,845.3 billion and an operating profit of KRW 150.6 billion, marking a year-on-year increase of 30.5% and 128.4%, respectively.
This latest contract follows Seoyon E-Hwa’s earlier expansion into the American market, having established corporations in Alabama and Georgia in 2005 and 2010 respectively. The company has also invested 37.9 billion Won to expand a new plant in Savannah, Georgia to supply parts to Hyundai Motor Group’s exclusive EV factories and broaden its North American business.
The company is anticipated to invest up to 100 million dollars in the future to further penetrate the US market, while also seeking additional orders following the Tesla Cybertruck pillar parts contract. Despite the relatively low unit price of the filler supply, the inclusion of floor parts is expected to significantly boost sales.
In response to the recent developments, an official from Seoyon E-Hwa stated, “It is still in progress internally,” and added that due to a confidentiality agreement, no further details could be shared about the order.
