Strong growth with double-digit increase in sales
- 30 years of presence in South Korea: long-term strategy paying off
- Bosch expects growth to continue in South Korea in the years ahead
- Joint venture for wiper systems planned
- Established markets important for growth strategy in Asia Pacific
Stuttgart/Seoul, 7-7-2015 — /EuropaWire/ — Bosch is growing rapidly in South Korea. Last year, the supplier of technology and services generated consolidated sales of 1.5 billion euros there, registering growth of 21 percent. “We expect to be able to expand our business in South Korea at a similar pace in the years ahead,” said Peter Tyroller, the Bosch board of management member responsible for Asia Pacific. He added that this success is the result of a long-term strategy of continuous investment in the expansion of local activities. In order to further strengthen its position in the Korean market, Bosch recently announced a joint venture with the wiper manufacturer Kyung Chang Wiper Corp. (KCW).
Wiper systems business to be strengthened
Within the next few weeks, the joint venture will start operations under the name KB Wiper Systems (KBWS). It is planned that some 700 associates will work there. Bosch plans to contribute its wiper business in South Korea to the new company. KCW will be adding its global business with wiper arms and blades. The joint venture’s new headquarters will be in Daegu. “The partnership with KCW brings us even closer to our customers, thereby strengthening the position of our wiper systems in the Korean market. The new company will allow us to develop products that are geared to both original equipment manufacturers and the aftermarket,” said Dr. Frank Schäfers, president of Robert Bosch Korea.
Bosch is celebrating its 30th anniversary in South Korea this year. All its business sectors – Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology – are now represented in the country at a total of six locations. In Yongin, south of Seoul, Bosch not only has its Korean corporate headquarters, but has also operated an engineering center since 1990, where 250 engineers are currently working on solutions for the local market. In Daejeon, the company has been manufacturing components for diesel engines since 2001. In the past five years alone, Bosch has invested more than 200 million euros in the expansion of its manufacturing and engineering locations in Korea. The company currently employs nearly 2,000 associates in South Korea.
Asia Pacific: growth region number one
In Asia Pacific, Bosch grew its sales 17 percent (19 percent after adjusting for exchange-rate effects) in 2014, to 13 billion euros. At just under 27 percent, the region’s share of total sales reached a new high. Sales growth was especially strong in China, rising a nominal 27 percent to 6.4 billion euros. In Peter Tyroller’s view, established markets such as South Korea and Japan remain an important pillar of Bosch’s growth strategy in Asia Pacific: “In industrialized markets, our focus is on innovative products, services, and new business models which create additional customer benefit and spark enthusiasm.” Bosch also sees great business opportunities in the area of connectivity in South Korea, one of the world’s leading economy for key industries in this field.
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The Bosch Group is a leading global supplier of technology and services. It employs roughly 360,000 associates worldwide (as per April 1, 2015). The company generated sales of 49 billion euros in 2014.* Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiary and regional companies in some 60 countries. Including its sales and service partners, Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. In 2014, Bosch applied for some 4,600 patents worldwide. The Bosch Group’s strategic objective is to create solutions for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.”
The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.
*The sales figure disclosed for 2014 does not include the former joint ventures BSH Bosch und Siemens Hausgeräte GmbH (now BSH Hausgeräte GmbH) and ZF Lenksysteme GmbH (now Robert Bosch Automotive Steering GmbH), which have since been taken over completely.