More than three decades on from its establishment, hydraulic hose fittings manufacturer DaeHan is looking to showcase its extensive portfolio of products by increasing its presence in both America and Europe.
Initially established in 1990 as an automobile components manufacturer, today DaeHan Precision Industry is an established international presence, renowned for manufacturing high-quality, cost-effective hydraulic hose fittings.
“Our business philosophy,” company President Kim Oh Gon explains in an interview with The Worldfolio, “centers on earning our clients’ trust. Much like popular restaurants thrive through word of mouth, our clients advocate for us based on our quality, performance and timely delivery.”
Such qualities should stand the company in good stead in the face of changes that have seen the domestic landscape become increasingly saturated and competitive. Globally, of course, things are changing too, with the economic conflict between the U.S. and China obliging major corporations to reorganize their supply chains. Far from being problematic, however, this shift provides South Korean companies with a significant opportunity.
Mr. Kim takes up the thread: “Ongoing logistical challenges and supply-demand mismatches mean that the U.S. is now turning to its allies, including South Korea, Japan and Taiwan. From the U.S. perspective, while sourcing products from Mexico or Latin America may offer lower costs, political instability in those regions is a concern. Japanese products are costly, and European Union products lack the diversity to meet U.S. market needs adequately. Hence, the U.S. administration is increasingly focusing on the Korean logistics channel.”
Kim Oh Gon, DaeHan Precision Industry
“We believe in quality and cost-effectiveness, as well as client loyalty and meeting delivery deadlines.”
Kim Oh Gon, President, DaeHan Precision Industry
Meanwhile, having previously sourced raw materials from China, Vietnam and Indonesia, global conglomerates Hyundai, Samsung and LG are beginning to focus on producing finished goods in South Korea by procuring materials and components from Korean SMEs. One of the reasons for this shift, Mr. Kim states, is South Korea’s “unrivaled quality and productivity,” and DaeHan itself has been supplying products to the U.S. aviation market and companies such as Komatsu, Hitachi and Caterpillar.
The fact that global conglomerates are bolstering Korean SMEs by investing in smart factory technology and advanced automation provides ready-made incentives for the companies that benefit to remain as competitive as possible.
And for his part, Mr. Kim is in no doubt where DaeHan’s strengths lie: “Our competitiveness rests on three key factors. First is productivity and automation. We’re pioneers in adopting robots in our assembly lines and plan to introduce 39 robot lines by 2027. Second is material development, where we’re continuously experimenting with various materials to find the best fit. Third is HMLV (high-mix, low-volume) production, allowing us to manufacture multiple product types in low volumes from our smart factories.”
DaeHan’s fittings
Looking to the future, Mr. Kim cites recent developments such as electric vehicles (EVs) and electric excavators as factors that will ensure sustained company growth. Elsewhere, achieving miniaturization, lightweight construction and compactness in company products will represent key challenges in maintaining relevance in the rapidly evolving hydraulic fitting industry.
“We are aiming,” he says, “to capitalize on the trend of miniaturization in heavy-duty vehicles, which are becoming lighter all the time.” It is worth noting here that the company is anticipating a significant increase in orders for heavy-duty vehicles once conflicts in Ukraine and the Middle East are resolved.
Another key focus will be the company’s product lineup. With 3,500 items currently on offer, Mr. Kim is hopeful that figure can be increased by a further 1,000. “While many of our competitors are moving away from HMLV,” he says, “we are embracing it even more.”
Already an established international presence, exporting to more than 10 countries, the company is looking to expand further still. “Moving forward,” Mr. Kim confirms, “our primary focus will be on the U.S. and European markets. As part of our efforts there, we attended the Hannover Messe exhibition last year, and we are pleased to announce that we will have a booth there in 2024.”
With the company’s competitive edge based on quality, cost-effectiveness and winning clients’ trust, Mr. Kim is keen to emphasize that DaeHan’s business management approach also includes knowledge management. He concludes: “DaeHan is actively supporting its employees in pursuing graduate education so they can better contribute to the company’s growth. We believe that human resources will play a crucial role in our future endeavors.”
For more details, explore their website at http://www.daehanfitting.com/front/phtml/index.php
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