Bosch to invest W170b in Korea this year

DAEJEON ― Bosch Group will invest 170 billion won ($150 million) into the production of gasoline direct injection systems in Korea this year and create some 400 new high-skill jobs, the Korean unit said Tuesday.

“Due to some profitability issues at the corporate level, we had to cut down the investment amount (from the original 200 billion won announced in September) this year,” said Hermann Kaess, president and CEO of Robert Bosch Korea. 

The German auto parts manufacturer last year invested 60 billion won to build two production lines for gasoline direct injectors at its Daejeon plant.

When their full-year production starts next year, the total output will reach 6 million injectors per year and Hyundai Motor Group is the key client, officials said.

New spending worth 170 billion won will be poured this year into the production of high-pressure pumps for gasoline fuel injection.

“After many years of strong growth, our business in Korea was affected by the dissolution of two joint ventures, mainly, as well as by the circumstances of economic uncertainty in 2012,” said Kaess.

“For 2013, we are confident to achieve again a good sales performance despite the continuous influence of considerable economic risks.”

Last year, Bosch Korea logged 2.038 trillion won in its Korean sales. Its annual growth rate over the past decade stood at 13 percent.

The Korean chief said, however, Bosch is still open to new business partnerships with Korean firms, including mergers.

In August, Bosch sold its stakes in KEFICO Corp., a 25-year-old joint venture with Hyundai Motor as the Korean carmaker wanted to run the company independently.

Kaess also pinned high hopes on sustainable growth in Korea where some 6 million vehicles are produced annually, almost the same level as in Germany.

“Especially, the Korean government is fast introducing regulations on CO2 emissions and gas mileage ― the areas where we have a competitive edge,” he said.

Korean units of Bosch include Robert Bosch Korea, Bosch Electrical Drives Co., Bosch Rexroth Korea Ltd. and ETAS Korea Co., together with joint ventures such as Doowon Precision Industry Co.

By Lee Ji-yoon (jylee@heraldcorp.com)