A Strategic Milestone in Global Automotive Leadership
Hankook & Company Group, led by Chairman Cho Hyun-Bum, announced the successful completion of its acquisition of Hanon Systems on January 6, 2025. This milestone marks the peak of a ten-year association that began with Hankook acquiring a 19.4% stake in Hanon Systems back in 2014. The Group strengthened its position by acquiring a 54.77% majority stake through a combination of rights offerings and share purchases in December 2024 and January 2025. As a result, Hanon Systems is now a subsidiary of Hankook & Company Group under Korean corporate law, propelling the Group to new heights in the global automotive sector.
A Decade of Strategic Partnership
The acquisition signifies the final step in Hankook & Company Group’s deepening relationship with Hanon Systems, a leading provider of automotive thermal and energy management solutions. Founded as Halla Climate Control in 1986 and later rebranded as Hanon Systems in 2015, the company has become a key player in thermal management technology, essential for the performance of electric vehicle (EV) batteries.
Hankook & Company Group’s understanding of Hanon Systems and its evaluation of synergies between their core portfolios of tires, batteries, and thermal management were pivotal in making this acquisition. As a result, Hankook & Company Group is now a comprehensive global automotive parts leader, offering cutting-edge technology and solutions to enhance vehicle performance and safety.
Strengthening the Mobility Portfolio
The addition of Hanon Systems solidifies Hankook & Company Group’s mobility portfolio, which now includes tires, batteries, and thermal management systems. Thermal management is crucial for EV battery efficiency, as it helps optimise energy usage and ensures safety in both traditional and electric vehicles. The acquisition also reaffirms Hankook & Company Group’s position as a high-tech leader in the automotive industry, making significant strides toward supporting the future of mobility.
Maximising Synergies for Future Growth
Looking ahead, Hankook & Company Group plans to leverage its enhanced capabilities to drive operational efficiency and strengthen its global presence. Through integration of resources and technologies, the Group aims to maximise synergies across its automotive businesses. The Group will focus on consolidating supply chain management (SCM), raw material procurement, and enhancing IT infrastructure to streamline workflows and improve efficiency.
A representative from Hankook & Company Group stated, “This acquisition completes our vision of a fully integrated, high-tech portfolio. By uniting the capabilities of Hanon Systems with our own, we are ready to lead the future mobility era and achieve extraordinary growth.”
Leadership Change to Drive Integration
As part of the acquisition, Hankook & Company Group appointed Soo Il Lee, Vice Chairman of Hankook Tire, as the new CEO of Hanon Systems. Mr. Lee brings 37 years of experience in Hankook Tire, having held various key positions including President & CEO from 2018 to 2024. His leadership will be instrumental in ensuring smooth integration and creating synergies between Hankook & Company Group and Hanon Systems.
Mr. Lee commented, “I am committed to driving Hanon Systems’ integration, improving financial performance, and maximising the potential of this powerful new partnership.”
