BH acquired LG Electronic’s wireless mobile phone charging business for vehicles, instantly rising as a primary supplier for auto manufacturers. This will help BH secure a $2 billion wireless charging market order backlog over the next 10 years. Reaching the ‘1trillion(KRW) club’ for the first time last year, BH has laid a foothold for growth of a new company to follow smartphones in the electronics business.
On the 27th, BH established BH EVS and announced that it would acquire LG Electronics’ wireless smartphone charging business for vehicles for KRW 136.7 billion. DKT, a subsidiary company of BH that specializes in surface mounting, also secured a 44% stake in order to maximize synergy between affiliates.
BH has decided to acquire LG Electronics’ wireless smartphone charging business for vehicles in order to advance into the electronic components market, the next major upcoming market.
LG Electronics’has secured a world-class technology for the wireless smartphone charging business for vehicles. It is ranked 1st and holds 30% of shares on the global market.
LG Electronics has directly supplied wireless charging modules to several major auto manufacturers in the world, including the US, Japan, and Europe. By acquiring LG Electronics’ business, BH has become global automakers’ primary parts supplier. BH expects to secure an order backlog worth more than $2 billion from the wireless charging business alone in next 10 years.
The global mobile phone wireless charging market for vehicles has a bright outlook due to its rapid growth.The global wireless charging market for mobile phones for vehicles this year is expected to reach 20 million units per year.According to BIS Research, a market research company, the wireless charging market for mobile phones for vehicles is expected to grow at a rapid rate of 41% over the next three years.BH has secured a new and stable revenue stream.
The acquisition of the new business has accelerated the growth of BH's electronics business.BH is the No. 1 flexible printed circuit board (FPCB) producer in Korea, and mainly specialized in display FPCBs for smartphones.
BH has put everything into expanding the electronics business. Growing around the smartphone parts business, BH has entered the era of 1 trillion won in annual saleslast year, after 22 years of its founding.
The ‘big deal’ reflected the management’s strong will to drive the strengthening of the electronics business. It is a strategy to expand to various electronics parts businesses, starting with the supply of mobile phone wireless charging parts for vehicles, securing the position of ‘tier 1’ in the finished automobile industry.
They have been steadily building on their foundation to enter the electronics business. BH entered the battery cable parts business in 2018, starting with parts installed in vehicle infotainment. Its supply history is growing, already supplying Hyundai Ionic, Audi, etc. Last year, BH invested KRW 50 billion in production facilities for FPCB for vehicles.
The outlook for sales is also bright. BH recorded annual sales of KRW 1.369 trillion last year. This is a record high in achievements, growing by 43.8% compared to the previous year. Operating profit also increased by 108% compared to the previous year to KRW 71.1 billion. This year's performance is also expected to surpass last year's performance, achieving new records.
A BH official said, “The company plans to expand various electronic parts businesses such as FPBC cables for electric vehicles and infotainment.”, and went on to say, “We will maximize corporate value by securing differentiated competitiveness through rapid growth in the global electronic parts market.”
By Staff Reporter Sora Park (srpark@etnews.com)