Facility expansion for Guksa Industrial Complex in Cheongju
Production line scheduled to complete by 2024
Equipment production capacity increased by more than triple
mPLUS will invest KRW 22.4 billion to expand the EV battery assembly plant. This is a response to meet the demand for assembly process equipment from major battery customers.
mPLUS announced that the company will invest KRW 22.4 billion to expand the secondary battery assembly equipment production line in the Guksa Industrial Complex in Cheongju, North Chungcheong Province. It will expand facilities near the location of its main plant, Oksan Industrial Complex in Cheongju. The completion of construction of the assembly equipment production plant is scheduled by 2024.
mPLUS explained that its decision to expand its production line as taking more orders for equipment for the assembly process of EV batteries from customers. The production capacity will more than triple when the investment is completed. The investment was made for the turnkey supply of assembly equipment. mPLUS is a domestic equipment manufacturer that is able to produce all the parts necessary for the main production of secondary batteries in the assembly process.
mPLUS is taking more orders for assembly equipment in the EV battery market. It supplied assembly equipment to US battery manufacturer A123 Systems in 2008, and successfully supplied mass-production equipment to Chinese battery manufacturer Wanxiang.
By securing SK On as a customer, mPLUS’ orders have increased with expanding equipment supply. SK On is rapidly expanding its EV battery production capacity in Europe, China and the US. mPlus expanded its order backlog by KRW 424.8 billion with additional KRW 272.8 billion in new orders this year.
The number of orders from overseas customers for assembly equipment is also increasing significantly. Demand for equipment is rapidly increasing as European and American battery industries are expanding facilities in order to meet the demand for EV batteries. Overseas battery manufacturers are discussing with domestic equipment manufacturers to expand their EV battery facilities. An official from mPlus said, "We will steadily expand the production capacity for assembly equipment as the demand for EV batteries continues to increase."
By Staff Reporter Ji-woong Kim (jw0316@etnews.com)