South Korean auto parts manufacturer Hyundai Wia Corporation has taken full control its turbocharger joint venture with Japan's IHI Corporation.

The joint venture, called Hyundai Wia IHI Turbo Corporation, was established in 2013 with Hyundai Wia owning 51% of the equity and IHI 49%. A factory was built in Seosan, Chungnam province, with capacity for 200,000 turbochargers per year.

Production started in 2015, with output last year of around 70,000 units – which supplied for Hyundai-Kia's Gamma petrol and A2 diesel engines. 

A spokesperson for Hyundai-Wia, which is 25.3% owned by Hyundai Motor and 13.4% by Kia Motors, said the company plans to expand annual production capacity to 1.2m units by 2020 – which it hopes will help cut unit production costs by around 20%.

The company said it will maintain technology ties with IHI which controls product/manufacturing technology for the turbochargers.

Hyundai-Wia's automotive division specialises in transmission and engine parts with Hyundai Motor accounting for around 70% of sales.

The company reported a 96% earnings decline in the first quarter of the year due to falling vehicle production.