[2015 sales of 500 billion won-operating margin of 10% target.. Rather higher profit margin due to rising raw material prices]

KPF, a manufacturer of bolt and nut automotive forgings, enters the Chinese mid-to-large bearing parts market.

 
In addition, the Vietnam plant completed last year is expected to achieve sales of up to 10 billion won this year.

On the 13th, KPF Director Moon Doo-sung said, "I recently signed a contract for a factory site in Jinan City, Shandong Province, China," and said, "We will invest 20 million dollars for 3 years and start operation in 2012." . KFC is currently in the process of finalizing a long-term supply contract with a Chinese company and expects total sales of 100 billion won in China. 
KPF is determined to regain the market for standard low-priced fasteners that were stolen to China through a Vietnamese subsidiary.
 
The Spanish subsidiary is expecting sales of 30 billion won this year. In January, it took over the Spanish factory of SKF, a Swedish bearing manufacturer, inexpensively, and extended the supply contract with SKF until 2015. This year alone, about 100 billion won of supply is planned.

Director Moon said, "It is enough to operate 100% of the production facilities with only 80 billion won in orders already this year." "After the first quarter, confidence in this year's performance increased, raising the consolidated sales target this year from 200 billion won to 250 billion won. "He said. He was optimistic that the operating margin, which had fallen to the 5% level due to new facility investment, will also rise to the 8% level.

KFA expects to achieve sales of 500 billion won in 2015 by growing more than 20% annually in both sales and profits over the next three years. The operating margin is planned to rise to 10%. Considering the industry average operating margin of 3.5%, this is quite high.

Director Moon explained, "As the raw material heat treatment facility was internally completed last year, every time the price of steel rose, the effect of reducing the price increased," he explained. "It is also competitive to be able to transfer the increase in raw material prices to product prices immediately." In addition, the inexpensive acquisition of facilities in the US and Europe, such as the SKF Spain plant, is another way to increase sales efficiency.

Currently, KFA's sales account for 50% of the total sales of forged automotive parts with high added value, and 50% of fasteners such as bolts and nuts. The proportion of domestic demand and exports is 6 to 4, and the major overseas markets are Europe and North America, but they are looking brightly in Latin American markets such as Mexico and Brazil. In particular, Brazil is expecting sales of 20 billion won since its first delivery this year.

Director Moon said, "If the fasteners were able to continuously generate sales even in the financial crisis, the future growth engine would be wind power." KFA plans to increase the proportion of wind power business to 20% of total sales in the future.

Meanwhile, KFA also repurchased the shares of TMC, which it sold to Daehan Electric Wire, in 2008, and the management rights issue has also been resolved. In 2015, TMC, the parent company, is also expecting sales of 500 billion won, so it is expected that the combined sales of 1 trillion are possible.