BorgWarner Turbo Systems has announced the formation of a joint venture with Korea Flange Company Ltd. (KOFCO) for the manufacture and sale of turbochargers in Korea. The name of the joint venture is SeohanWarner Turbo Systems Jusik Hoesa. (The legal term Jusik Hoesa is similar to a GmbH in Germany or a Ltd. in the United Kingdom.)
Ownership of the joint venture is 71% BorgWarner Turbo Systems and 29% KOFCO. It will be based at BorgWarner’s Engine Group campus in Pyongtaek, Korea.
“This joint venture is a pivotal development in BorgWarner Turbo Systems’ growth plans for Korea,” said F. Lee Wilson, BorgWarner Turbo Systems President and General Manager. “Beginning next year, diesel engines will be allowed on passenger cars in Korea and thus we anticipate a significant increase in the demand for turbochargers. In addition, Korean automakers are making significant inroads in export markets such as Europe. Our new venture with KOFCO will position us well to maximize these growth opportunities.”
KOFCO is a Tier 1 Korean automotive supplier, which specialises in drivetrain components including front and rear axle modules, CV joints, and forging parts. The company was founded in 1974 and has seven locations, including one operation in the U.S. and one in China. Sales in 2002 were about $400 million.