HYTC to reorganize overseas subsidiaries and pursue digital transformation in bid to return to profitability

[Financial News] HYTC, a company specializing in ultra-precision parts and molds for secondary batteries, is reorganizing the roles of its global subsidiaries and pursuing a digital transformation. It aims to speed up customer response by linking the headquarters' technical capabilities with the production and service capabilities of its overseas sites, and to return to operating profit through revenue growth and fixed-cost reductions.
According to industry sources on the 14th, HYTC plans to reorganize production, sales and staffing functions across seven locations in five countries, including its headquarters in South Korea and sites in Ohio, Georgia and Tennessee in the United States, Poland, China and Indonesia. The key is to adjust each site's role to on-the-ground needs, including delivery schedules, quality, operational stability and maintenance requirements for customers' production lines.
The headquarters will focus on research and development, production of key products, setting quality standards and technical decision-making. Overseas subsidiaries will leverage their proximity to customers to handle local production, regrinding, technical services, sales and delivery schedules. The company plans to allocate production and service functions according to each subsidiary's products and customer demand, while managing utilization rates and profitability together.
HYTC's Georgia subsidiary in the United States recorded sales for the first time since its establishment, laying the groundwork for expanding its local business. The company plans to strengthen its customer-response capabilities so the initial sales lead to ongoing business and additional orders. Its strategy is to connect the headquarters' technical and quality capabilities with local sales and services, covering everything from product supply to maintenance and broadening its North American revenue base.
HYTC is also pursuing an upgrade to its enterprise resource planning (ERP) system as part of its digital transformation. The new system is targeted to go live in the first quarter of 2027. By linking production information, cost structures, quotation standards, delivery schedules and service histories at the headquarters and overseas subsidiaries, the system is expected to speed up quote preparation in response to customer requests, as well as production and technical support.
Through this, the company plans to systematically track each subsidiary's profit and loss and costs, and to monitor the effects of reorganizing production and service functions. The aim is to establish an operational foundation that can improve profitability while strengthening customer-response capabilities at overseas sites.
HYTC will also expand its business from supplying parts and molds to providing solution services that address problems on customers' production lines. Even after products are delivered, the company plans to support the operation of customers' production equipment by combining regrinding and maintenance with urgent technical assistance and product-upgrade support.
This year, HYTC will seek to expand overseas sales, focusing on its subsidiaries in North America and Poland. It plans to assess local customer demand, production plans and the potential to increase supply of each product, secure additional orders and translate them into improved profitability.
HYTC CEO Kim Wook-hyun said, "Reorganizing the roles of our global subsidiaries and pursuing a digital transformation are key tasks for improving both customer-response speed and the profitability of each subsidiary. By connecting the headquarters' technical capabilities with the production and service capabilities of our local sites, we will grow into a solution partner that solves problems on customers' production lines." 

[email protected] Kim Hak-jae Reporter