Annual press conference 2016: Bosch registers healthy growth in Korea


2016-12-15 | Corporate News

Bosch registers healthy growth in Korea

▶ Sales increased by 6 percent to 2.2 trillion KRW in 2015

▶ Bosch invested more than 34 billion KRW in 2015

▶ Further business diversification to better serve the market in Korea

▶ Bosch offering connected solutions to drive forward the Internet of Things in Korea

Yongin / Seoul – Bosch ended its 2015 fiscal year with 2.2 trillion KRW in consolidated sales in Korea, thus registering a healthy growth of 6 percent compared to the previous year. “Korea continues to be an important market for Bosch. We see an increasing demand for our diverse range of products and services,” said Dr. Frank Schaefers, president of Robert Bosch Korea Limited Company. “We will seize new opportunities with connectivity solutions, and for 2016, we anticipate our business to develop positively as we expect the Korean economy to show moderate growth,” Dr. Schaefers said.

Bosch investing continuously in Korea

To underline its commitment to Korea, the Bosch Group has been continuously investing in its activities in the country. In 2015, the company invested more than 34 billion KRW into its local business. In April 2015, KB Wiper Systems, a 50:50 joint venture with KCW Corporation, a Kyung Chang company, started activities to develop, manufacture, and sell wiper systems in the Korean market. A new plant will be located in the Daegu National Industrial Park and is expected to start production in January 2017. The total investment will be approximately 130 billion KRW by 2018.

Bosch offering tomorrow’s mobility: solutions for the car – and beyond

Bosch’s Mobility Solutions business sector registered steady growth in Korea in 2015 presenting solid business especially with its powertrain technology and driver assistance systems in Korea. Bosch is assuming a leading role in the transformation that is about to sweep through the automotive sector – automated driving, electrification, and connectivity. Bosch possesses extensive expertise in these fields. Combined with our systems integration competence, this means we are to develop innovative mobility solutions for our customers.

Bosch also sees great potential in the two-wheeler and in the commercial-vehicle business. For these segments, the company has established dedicated units in Korea in order to better serve the market and customer needs. The trends – automated driving, electrification, and connectivity – will have a long-term impact also on commercial vehicles and two-wheelers. In the commercial vehicle segment, for example, automated driving will play an increasingly important role in reducing accidents. Injection systems for two-wheelers – as opposed to the carburetor systems common today – reduce fuel consumption and thus make an important contribution toward resource conservation and environment protection. In order to improve two-wheeler safety, a Bosch ABS system has been developed for major models of Korean OEMs for exporting.

Positive development of business beyond mobility solutions

Also across its other business sectors, Bosch saw positive development in the Korean market and launched many new solutions. The Bosch Power Tools division continued to grow in 2015, recording positive growth in Korea for 11 consecutive years. Bosch Power Tools, the world’s first brand to apply Li-ion batteries to cordless power tools, developed and launched Wireless Charging Systems and 6.0Ah Li-ion batteries, a world first, in 2015. In 2016, Bosch Power Tools has launched the world´s first “10.8V cordless grinder” and a “4-in-1 almighty 18V cordless drill driver with SDS hammer chuck” and plans to launch an “18V Brushless Premium Impact Drill Driver” in the second half of the year.

Bosch’s Security Systems division showed a solid business in 2015. The mission “Maximize Connected Solution” started in 2015 states that Bosch Security systems are providing one integrated solution to customers need. The division is expected to grow further in 2016 with the enlargement of its sales channel by agreeing to a distribution partnership with a major local provider of video security systems. Meanwhile communication business unit will introduce new products such as the X-Line Advance Line Array speaker systems and ND Series microphones.

Bosch Rexroth Korea ended its fiscal year 2015 at a level similar to the previous year, even though the competitive pressure increased significantly due to effects such as a depressed market for mobile applications and the economic slowdown in emerging markets. The Marine & Offshore and electronic applications related businesses have generated a strong sales increase however and for 2016, Bosch Rexroth expects further growth again despite the challenging market conditions.

Business diversification as a success factor to serve the market

This shows the diversity of Bosch’s products and solutions – which is a key success factor in the Korean market, too. For instance, in the marine and offshore industry, Bosch offers diverse solutions such as ship security systems, hydraulic solutions for offshore and subsea equipment, automated port, and common rail direct injectors (CRDI) for marine diesel engines. As a one stop supplier with global presence, Bosch can support the Korean customers to strengthen their competitiveness in the global market.

Actively shaping the digital transformation

Korea is already one of the most wired countries around the world and the Korean government has introduced the “K-ICT” (Information and Communications Technologies) strategy to overhaul the nation’s information communications technology industry. The Internet of Things (IoT) is therefore strategically important for Korea. Bosch is working to provide solutions for the IoT solutions in all of its business sectors and is the only company that is active in all three levels of the IoT: sensors, software and services. This makes Bosch different from traditional manufacturing companies. The company is increasingly using connected services to build on its broad basis in the hardware business. As it does so, Bosch benefits not just from its technological diversification, but also from its wide-ranging industry and domain expertise. To emphasize the digital transformation as a provider of solutions for a connected world, Bosch introduced a new corporate design earlier this year. The new corporate design pushes the emotional aspects of the brand to the fore with more colors and a new language of imagery and form.

Bosch will focus its efforts on providing solutions also in Korea. “With connected solutions, we want to help improve quality of life and conserve resources,” Dr. Schaefers said. For instance, in the world of connected industry, also known as Industry 4.0, Bosch is a leading provider offering solutions such as drives, automation, sensors, software, and predictive maintenance – and it is also a leading user. In Korea, the company has been implementing pilot projects at its manufacturing location in Daejeon in the past year.

Bosch Group worldwide business outlook for 2016

Following a record year in 2015, the Bosch Group wants to continue its growth trend this year. The leading global supplier of technology and services expects worldwide sales to grow within an exchange rate-adjusted range of 3 to 5 percent in 2016. Speaking at the company’s annual press conference in Germany, Bosch CEO Volkmar Denner said: “We plan to grow not only with innovative products, but also with innovative services.” The newly created Bosch Global Service Solutions division, the recently established Bosch IoT Cloud, as well as the Bosch Smart Home System launched at the start of 2016 contribute to this strategy.

About Bosch in Korea

Bosch in Korea manufactures and markets automotive original equipment and aftermarket products, industrial automation and mobile machinery products, power tools and accessories, and security systems. The company opened an office in Seoul in 1985. Bosch operates five companies in Korea: Robert Bosch Korea Limited Company, Bosch Electrical Drives Co., Ltd., Bosch Rexroth Korea Ltd., ETAS Korea Co., Ltd., and KB Wiper Systems Co., Ltd. (KCW 50%). Total employment amounts to around 1,900 associates as of December 31, 2016. Bosch has a strong R&D presence in Korea with more than 250 engineers in research and development and a technical center with state of-the art testing and application facilities. In fiscal 2016, Bosch generated sales of 2.3 trillion KRW in Korea.

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Bosch Group

The Bosch Group is a leading global supplier of technology and services. It employs roughly 400,500 associates worldwide (as of December 31, 2017). According to preliminary figures, the company generated sales of 78 billion euros in 2017. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. As a leading IoT company, Bosch offers innovative solutions for smart homes, smart cities, connected mobility, and connected manufacturing. It uses its expertise in sensor technology, software, and services, as well as its own IoT cloud, to offer its customers connected, cross-domain solutions from a single source. The Bosch Group’s strategic objective is to deliver innovations 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 Bosch Group comprises Robert Bosch GmbH and its roughly 450 subsidiaries and regional companies in some 60 countries. Including sales and service partners, Bosch’s global manufacturing, engineering, and sales network covers nearly every country in the world. The basis for the company’s future growth is its innovative strength. At 125 locations across the globe, Bosch employs 62,500 associates in research and development.

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 upfront 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.

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