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South Korea Business Report

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Precision engineering company NEDEC widens market reach, prepares for IPO

NEDEC is a trusted end-to-end specialist in manufacturing die-casting and machining products for automobile components, consumer electronics and precision motors, and is getting ready to go public

PUBLISHED : Wednesday, 25 October, 2017, 10:36am
UPDATED : Wednesday, 25 October, 2017, 10:36am

Supporting electronics, automotive and industrial parts manufacturers as they respond

to increasingly sophisticated market demands, precision engineering company NEDEC provides cutting-edge solutions to improve productivity and efficiency levels of its global clientele.

Starting as Daeil Precision in 1985, NEDEC has become a trusted end-to-end specialist in manufacturing die-casting and machining products for automobile components, consumer electronics and precision motors.

“We are one of the few companies capable of offering a total metal platform solution, encompassing precision moulding to assembly,” says CEO Stephen Hwang. “All processes, from raw materials to finished products, are handled in-house at our state-of-the art production and testing facilities. This integration of front-end and back-end production ensures consistent product quality and higher yield for our customers.”

Specialising in ultra-precision components to support the light weighting trend in the auto sector, NEDEC stands as the preferred supplier to many global players such as Honda Motors, Continental, Magna and Denso.

With more than 30 years of expertise, the company’s expansive product portfolio includes transmission valve bodies, housings for engine control units, camera housings and modules, and solenoid parts. It is also one of only four manufacturers in the world with micro-milling competency to make headlamp optics moulds.

For electronic applications, NEDEC is a global supplier of smart phone frames, advanced hard disk drive and solid state drive (SSD) base plates, enclosures and clamp disks. Among NEDEC’s notable customers in this market are Samsung Electronics and Seagate. NEDEC supports 45 per cent of Samsung’s demand for SSD enclosures.

NEDEC likewise is an established producer of fluid dynamic bearings (FDBs), which are preferred over ball bearings for their low noise, impact resistance, low-power consumption and long life. NEDEC operates the world’s largest factory for high-precision machining, unit assembly and mass production of FDBs in Thailand.

“We maintain consistent high-quality standards, offer competitive pricing and adhere strictly to delivery schedules,” Hwang says. “By ensuring that these three basic demands are met every time, we build trust in our customer relationships.”

To reinforce its globalisation strategy, NEDEC has built a global manufacturing presence and supply chain network, encompassing Asia to the Americas. In South Korea, NEDEC operates three manufacturing sites and has a research and development (R&D) centre at its headquarters in Suwon. Showcasing close relations it nurtures with long-time clients, NEDEC’s Gimcheon factory is partly used for development work on Samsung Electronics’ upcoming mobile phone models.

In China, the centre of the Asian market, NEDEC has four factories to cater to Korean and multinational companies based in the country. The company has also opened manufacturing sites in Vietnam, Thailand and the Philippines.

With the establishment of NEDEC America and NEDEC Mexico, NEDEC ensures that North American companies have access to world-class components and technical support from a seasoned offshore manufacturer.

“Wherever customers need us, we have a site near them – allowing us to fulfil just-in-time delivery that translates to greater efficiency and lower operating costs for them,” says Tony Lee, executive senior vice-president, CFO and chief marketing officer.

We are one of the few companies capable of offering a total metal platform solution, encompassing precision moulding to assembly
Stephen Hwang, CEO

Building on its reputation as a world-leading metal platform and FDB solution partner, NEDEC ventured into the development and manufacture of small precision motors. It focuses on efficient and lightweight motors, including drone propeller motors, gimbal motors, FDB motors and home robot motors. These motors feature highly engineered components and low-cogging torque for improved manoeuvring at low speed. NEDEC’s robot motors are additionally equipped with an integrated brake system for controlling the stop movement of robot heads.

“We see tremendous opportunities ahead for our precision motors,” Lee says. “It is a niche business in the growth stage, bolstered by rising applications in various sectors, ranging from use in mobile phones to automobiles, robots and trains.”

Apart from its motor platform as a key growth area, NEDEC is looking at diversifying into the medical and health care field. It is exploring possible uses of its precision machined parts in medical instruments and surgical equipment. Seeing enormous growth potential, NEDEC is open to

partnerships and acquisition opportunities to establish a foothold in this promising sector.

“We thrive on innovation,” Lee says. “Staying ahead of the industry means relentlessly investing in pioneering technologies and new applications that will help create a better tomorrow.”

Backed by a strong in-house R&D team, NEDEC is steadfast in its pursuit of innovations to meet more demanding industry requirements.

NEDEC conducts its R&D efforts in partnership with world-leading enterprises and prominent universities, notably Seoul National University. It is also developing a process technology and vacuum equipment system for vacuum die casting.

To continue expanding its worldwide market presence and extend its investments in innovation, NEDEC is preparing to go public by middle of next year. The company plans to have its initial public offering (IPO) on the Korea Composite Stock Price Index (KOSPI).

With a strong financial foundation underlined by its full ownership of all overseas assets, NEDEC presents a value-laden option for international investors.

NEDEC also shows bright growth prospects with sales of more than 218.5 billion South Korean won (HK$1.5 billion) in 2015, up from 131.4 billion won the previous year.

NEDEC is slated to stage a pre-IPO fundraising tour from November this year to January next year. Many investors, including the Korea Development Bank and parties from Saudi Arabia and Japan, have expressed interest in participating in the pre-IPO placement.

“Amid these growth plans and our KOSPI debut, we at NEDEC promise to deliver the same level of reliability that we have become known for – providing total solutions and fostering long-term customer relationships,” Hwang says.

www.nedec.com