Seil Industrial Gears Up for Global Growth with New Portfolio

In recent years, due to an increasingly saturated and competitive domestic market, it has become crucial for Korean SMEs to diversify their opportunities and adopt a global mindset to sustain growth. For many exporters, now appears to be an ideal time for Korean companies to capitalize on global supply chain realignments and onshoring strategies from Western corporations, bolstered by governmental initiatives like new tariff policies, the European Green Deal, or new ESG regulations. These policies are encouraging major corporations to rethink their supply chain networks in favor of partnerships with friendly countries. Do you agree with this sentiment?

I completely agree. In recent years, the reshaping of the global supply chain has created opportunities for SMEs in Korea. In particular, the strategies of “reshoring” and “ally country-based supply chains” are advantageous for Korean companies, which have strengths in technology and delivery responsiveness. This trend is not just about supplying products; it is creating opportunities to expand roles as strategic partners. Even during the collapse of the global supply chain in the pandemic, Korean companies' ability to respond with timely and localized supply solutions was highly recognized.

In terms of opportunities, the increasing demand for high-quality, high-precision parts, along with the flexibility and technological capabilities to actively address ESG and carbon neutrality issues, are significant advantages. On the other hand, challenges include global certifications, language or cultural barriers, and exchange rate risks. To overcome these challenges, our company is continuously working on enhancing our quality management system, strengthening communication with overseas customers, and improving internal and external processes to ensure timely delivery.

Several experts are forecasting a brighter outlook for the heavy machinery industry starting in 2025. Difficult conditions in the global housing sector have led to a decline in construction equipment sales, particularly for compact machines, in most countries, with the notable exception of India. However, recent interest rate cuts in the U.S., Europe, and South Korea, combined with a growing need for infrastructure investment, offer encouraging signs. This trend also aligns with long-term demand for more equipment in the agriculture sector, supporting improved productivity. How do you foresee the evolution of the industry, and what impact do you expect this to have on your company?

In the medium to long term, we expect the infrastructure and agricultural machinery industries to continue their stable growth. In particular, the demand for automated and smart equipment in the agricultural machinery sector is expected to increase due to the issues of aging populations and labor shortages.

As our company manufactures key components for agricultural machinery transmissions and powertrains, we are strengthening our production capacity in line with this industry growth trend and have developed and completed product lines that enhance durability and efficiency. Additionally, we are expanding our application to the construction and logistics equipment sectors.

By implementing smarter management processes, automation systems, and digital and IoT technologies, the Korean SME sector has demonstrated remarkable agility. How crucial is it to adopt digital technologies and automation?

I believe that digitalization and automation are no longer optional but essential. In a rapidly changing environment where customer needs are constantly evolving, smart operations are key to establishing a production system that supports small-batch, multi-variety production and fast delivery response.

Especially in Korea, with the aging society, the decline in the workforce, and the rising wage levels, there is an urgent need for manufacturing methods based on ultra-high productivity. Companies must strive for innovation by applying robotics and AI technologies to reduce indirect labor hours and improve productivity, as well as to reduce direct labor.

While we are not fully automated, we have implemented a MES and process monitoring systems as part of our smart factory advancement. We systematically identify and improve our production flow. Through these systems, we are pursuing efficient production to enhance delivery response times and increase productivity.

Seil Industrial specializes in manufacturing powertrain parts and assemblies for farm machinery, heavy equipment, and forklifts. The company is currently preparing to open its fourth production facility to expand its market, bringing its total factory area to over 29,000 m². Could you walk us through the key milestones that have shaped Seil Industrial into the company it is today?

Since its establishment in 1982, we have steadily grown as a specialized company in precision gears and powertrain components for over 40 years. In particular, starting with the export of agricultural machinery transmissions and axles to Japan in 2002, we have expanded our presence in global markets, including the United States, China, Thailand, and Indonesia, thereby solidifying the Seil brand.

In 2022, we expanded the product line by developing our own drive axles for electric logistics vehicles based on the patents and received the $30 million export award. Recently, we have also ventured into the high-precision, high-value-added industrial components sector by developing timing gears for vacuum pumps used in advanced semiconductor factories.

These milestones are all the result of our ability to adapt flexibly to changes and to continuously develop new technologies. Moving forward, we aim to strengthen our proactive product planning, read market trends quickly, and grow into a world-class company.

Seil Industrial has long collaborated global leaders. What have been the key factors that led these global players to collaborate with Seil Industrial?

Firstly, I believe that continuous quality control and technological reliability are the most important factors. We view each product as a critical component directly linked to the equipment's lifespan and performance. So, we thoroughly verify its durability and precision. Over time, this has led to trust from our customers, and in fact, we have many overseas partners with whom we have maintained business relations for decades.

Secondly, it is our ability to respond to delivery schedules and our flexible production system. Global customers often face unpredictable order changes or urgent requests. While Seil Industrial is not equipped with large-scale automation facilities, we can respond reliably to small-batch, multi-variety orders by optimizing quality control and lead time for each process.

I believe these response capabilities and production flexibility have been major advantages for us.

Thirdly, responsible communication and responsiveness, our brand mindset of providing total solutions, are also important aspects. Rather than simply being a supplier of parts, we believe our approach of solving problems together and considering customers' technical requirements has helped build trust.

Lastly, Seil Industrial's authenticity is another key factor. We do not settle for “good enough” but always think from the customer's perspective and respond carefully. We believe this attitude is a common language that resonates even in the global market.

Seil Industrial has developed a versatile product portfolio that includes drivetrain components, reducers, and drive axles. Notably, the company produces slewing gearboxes for mid- and standard-size excavators, driving reducers, as well as 4-wheel steering axle for electrification of heavy machinery. Could you share with us some of your flagship products and their performance in the field?

Our representative products include, first, the small agricultural machinery transmission. This product is an HST (Hydro-Static Transmission) type and has sold over 150,000 units in the North American market. It is primarily supplied to AGCO, a top brand in the agricultural machinery sector. This product offers high durability and superior noise, vibration, and harshness (NVH) performance in harsh working environments.

The second product is the drive reduction gear for 5-ton mini excavators. Having sold over 200,000 units to date, this product has been mounted on complete vehicles from global top brands through Doosan Mottrol. Produced for decades, this product is known for its perfect quality, with performance improvements reflecting global market quality standards. It also boasts high durability in demanding working conditions.

The third product is the dual driver axle for electric forklifts. With over 50,000 units sold, this product is supplied to domestic complete vehicle manufacturers, including Hyundai, Doosan, and Clark. Featuring our proprietary patent system, this product is highly sensitive to NVH (noise, vibration, harshness) and is used in vehicles that replace engine-driven forklifts. It is a high-performance axle with a unique supply model for domestic complete vehicles and is a world-class product with high precision. It achieves a noise level comparable to or better than products from industry leaders like ZF and PMP.

At its in-house R&D center, Seil Industrial has accelerated the development of new product lines to expand into additional application areas, such as vacuum pumps, and gear reducers, differentials, and motor shafts for electric vehicles. What is the strategic rationale behind this business expansion?

The main reason Seil Industrial is expanding into a diverse range of products and applications is to secure a sustainable growth foundation in a rapidly changing industrial environment. Rather than relying on a single industry, the company aims to diversify revenue risks, create new opportunities, and secure operating profit by leveraging its core capabilities in precision machining and NVH expertise, as well as its modular design capabilities, to expand into various sectors.

What are some of the latest developments you've introduced in these new markets?

First, we have the high-voltage drive axle for electric forklifts. Traditional electric forklifts were not able to match the performance of engine-driven forklifts, and there was a customer need for a drive axle capable of high performance for lithium battery high-voltage applications. By applying our NVH gear profile tuning technology, we developed a system and completed the product, providing a total solution.

Second, the timing gear for vacuum pumps used in advanced semiconductor factories is a product we successfully localized. It responds to the market demand for high precision and durability simultaneously.

Additionally, the growth of the electric vehicle market has been both a challenge and an opportunity for us. We have proactively developed EV gear reduction units, differentials, and motor shafts, working closely with Hyundai Motor's Namyang Research Institute and Hyundai Mobis, from the design phase to prototype production, preparing for the future with our customers.

At the heart of all these processes is our in-house R&D center. In order to quickly respond to customer needs driven by rapid market changes and ensure flexibility in product design, we are focusing on establishing a system that can efficiently handle the entire cycle from development to mass production internally.

With annual exports exceeding USD 30 million, Seil Industrial serves customers in the U.S., Japan, China, and Southeast Asia. What is your international strategy?

Seil Industrial has established a stable customer base, primarily in the US, Japan, and Southeast Asia, and is enhancing its competitiveness in the global market based on long-standing technical expertise and trust in quality.

As the speed of industrial and technological change accelerates, it is crucial for us to maintain the flexibility to quickly respond to new industries such as heavy equipment, aerospace, defense, automotive, and robotics. In particular, we believe that our strengths can be well demonstrated in areas where durability and precision are critical, such as high-precision gears and powertrain components.

In the overseas market, we are targeting China and Europe as major strategic markets in addition to the existing US, Japan, and Southeast Asia. Since each region has different industrial structures and demand characteristics, we plan to expand our market by leveraging local partnerships, customization capabilities, and delivery reliability. We also see global trends such as ESG regulations and supply chain reshoring as opportunities for small and medium-sized manufacturers like us.

Under the philosophy of "Flexible but Reliable," Seil Industrial aims to provide tailored value to domestic and international customers and grow as a global SME.

Which regions do you see as key drivers of future global growth?

Seil Industrial is focusing on three major global markets: the United States, Europe, and China.

First, the United States is already one of Seil Industrial's core markets, where we have been exporting for a long time, and the demand for high-value-added precision components continues to rise steadily. We plan to strengthen our partnerships with customers in the US and expand our position as a trusted partner based on high quality and reliable delivery.

Europe is a region where industrial transitions centered on ESG and eco-friendliness are taking place rapidly, and there is a strong corporate culture that values technical expertise and quality trust. Seil Industrial's precision manufacturing capabilities and systematic supply systems meet the demands of the European market, and we are actively pursuing market expansion based on these strengths.

China remains an attractive market in terms of scale, and recently, technological capabilities and customization responsiveness have emerged as key competitive factors, surpassing just price competitiveness. Seil Industrial is strategically entering niche industrial sectors in China and aims to secure differentiated competitiveness by offering products and services tailored to the local market.

In this way, we aim to continue global growth by flexibly responding to the characteristics and changing trends of each market, leveraging Seil Industrial’s unique strengths.

As global demand in both the heavy machinery and automotive sectors continues to call for greater flexibility and faster development cycles, Seil Industrial is positioning itself to stay ahead of the curve. How do you envision the company's growth trajectory, both domestically and internationally?

At our 2025 New Year's ceremony, we declared our “Vision 30-20-10”. This is aimed at achieving sales of 200 billion KRW and an operating profit margin of 10% by 2030.

To expand sales, we are working on product development beyond the existing agricultural machinery market, including high-precision gear development for the domestic and international automotive industry, expanding the defense and aerospace parts business in Korea, and growing the robotics gearbox business. We are currently developing mission parts for KAI helicopters, mission parts for ROTEM tanks, and working with Hyzen Motors to develop actuators for robotics. This is part of our growth strategy to increase revenue and secure profit margins, and we are committed to achieving these goals.

In the international market, we are strengthening our relationships with current customers in the US, Japan, and Southeast Asia, while accelerating the development of new markets in China and Europe. Since the industrial structure, certification standards, and delivery requirements vary by region, Seil Industrial is thoroughly analyzing these factors and establishing tailored response systems.

Our goal is to grow with our global customers through competitive products based on our independent designs.

For more information please visit: http://www.seilkorea.com/