Seoul, South Korea – Hanon Systems, the world’s second-largest automotive thermal solutions provider now under the Hankook & Company group, is set to relocate its headquarters to the group’s main office in Pangyo as part of a broader effort to improve its business operations.
The company plans to complete the move to the TechnoPlex in Pangyo by early next month, according to industry sources on Monday.
Hankook & Company finalized the acquisition of Hanon Systems in early March by purchasing additional shares, increasing its stake to 54.7%. The swift relocation of Hanon Systems' headquarters to the group's main office just a month after the acquisition signals a rapid integration of the two companies.
The co-location of Hankook & Company and Hanon Systems in Pangyo is expected to accelerate the fusion of their corporate cultures. The TechnoPlex is already home to key subsidiaries of Hankook Tire & Technology, and serves as a global headquarters, overseeing regional headquarters, overseas branches, production facilities, and R&D centers worldwide.
Industry observers anticipate that Hanon Systems will become more aggressive in investing in areas like electric vehicle thermal management following its integration into the Hankook & Company group, thereby enhancing its competitiveness.
The group also plans to improve Hanon Systems' financial structure. The company reported operating losses in both the second and third quarters of last year due to the global automotive market downturn and declining demand for electric vehicles. Its debt-to-equity ratio has also deteriorated to around 282%. Hankook & Company aims to address these financial challenges before focusing on other aspects of the business.
Speculations about a name change for Hanon Systems have been dismissed for now. While there were initial predictions that the company would adopt a name reflecting the group's "Hankook" brand upon relocation, the group has prioritized building a collaborative system and stabilizing operations. A company official stated, "We are not urgently considering changes to our corporate identity or company name."
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