Finding new markets Assan Hanil Otomotiv

FINDING NEW MARKETS

Assan Hanil Otomotiv is a part of the large Turkish conglomerate Kibar Holding. The automotive parts manufacturer was established in 1996 in partnership with Hanil E-Hwa of Korea and since then its three main product groups have been seats, NVH and trim parts, and plastic injection and blow moulds. The company has now received substantial investment and is planning to expand in every direction. The company’s sales director, Ömer Küçüksavaş, answered Industry Europe’s questions.

MR Küçüksavaş explains that having first operated as a supplier only to Hyundai Assan, Assan Hanil then began to occupy a significant position amongst suppliers to Ford-Otosan in 2005. The company has recently succeeded in widening its client portfolio even further, by adding major car manufacturers Isuzu and Honda. Assan Hanil produces auto parts such as passenger and driver seats, door panels, ceiling and rug covers, rear parcel shelves, front and rear bumpers, front control panels, and inflated parts at its 30,000m2 factory facility, which houses a dynamic team of nearly 500 employees. Moreover, it has also been working hard to be in a position to generate tailor-made solutions not only for manufacturers of cars, but also for makers of any type of transport vehicle. An expert in seat manufacturing

Assan Hanil makes a huge range of products and applications for automotive interiors and exteriors such as robotic welding for seat frames, ultrasonic and vibration welding, plastic injection, laser scoring, robotic water jet cutting, robotic painting and so on. However, the main contributor to the company’s turnover has been its seat manufacturing operation, which is the reason why the company has

tended to specialise somewhat in this area. Mr Küçüksavaş states that the firm’s research and development department was awarded 12 new patents for seat development over the course of the last two years, and is currently working to develop products such as air suspension driver seats and plastic seats, while improving the manufacture of seat components with the use of composite materials. According to Mr Küçüksavaş, the biggest advantage of this particular product group is that it is not limited to the automotive industry. Although their biggest customers are currently all car manufacturers, Assan Hanil’s management has been making firm efforts to expand into other markets, and has identified their target groups as the aviation industry, railway train manufacturers and the shipbuilding industry. Moving towards Russia and China

Assan Hanil’s main method of promoting its products is through its attendance at international trade fairs and expos such as Busworld and Automechanika. Mr Küçüksavaş states that the next exhibition that the company will attend will be Automechanika Shanghai 2013. This is a strategic decision, as the company now has advanced plans

to move into the Chinese market. Alongside these plans to diversify their markets and regions of operation, the company has put together a strategy to begin expanding its sales team in 2014.

Turkey is currently Assan Hanil’s largest market but Mr Küçüksavaş says that company executives have already made contacts in Russia and China, and their market research indicates that there is a huge potential for new products in these markets. They have already had encouraging contact with Russian OEMs and expect to gain successful results from the Automechanika trade fair.

All of this is supported by the company’s ability to guarantee a high standard of quality. Assan Hanil currently holds the ISO/TS 16949, ISO 14001, 2011 OHSAS 18001, Q1 and 5 Star Quality System certificates, and has raised the bar in its work for transportation vehicles with its commitment to development, having founded an in-house R&D centre to guarantee continuity in the quality of its products and services. This centre was certified and supported by the Turkish Ministry of Industry and Commerce, something that is only achieved by companies that have particularly distinguished themselves in the country.

Continuous investment

Mr Küçüksavaş talks about Assan Hanil’s recent $40 million investment in the construction of a new plant and paint shop. According to Mr Küçüksavaş, this investment alone will double their sales figures, and help position

them as the biggest supplier for Hyundai Turkey. Although the company already holds all the necessary quality system certificates, Mr Küçüksavaş insists that they will continue to work to raise the bar in terms of quality and commitment to protect the environment. One way it does so is to continue investing in new technologies, while another is its implementation of a flawless quality management system aimed at zero defect, absolute customer satisfaction and timely deliveries. The company also operates under strict environmental guidelines and is committed to ensuring productivity by reducing waste and energy consumption through a process of waste separation and recovery that is in absolute compliance with the strictest regulations.

From automobiles to trains and boats

With regards to the company’s next five-year plan, Mr Küçüksavaş says “We have a plan to enter new markets. After the paint shop investment we are preparing a feasibility study for a third plant. We also aim to expand our products to enter the marine and railway sectors and offer a broader product range.” n