Since transforming into a joint stock company, HANAKA group has increased registered capital to VND1,100 billion to invest in five sectors: industry, electrical equipment, construction, finance and trade-service. The group continues stable growth, last week signing 10 agreements with strategic partners and contracts on products supply.
HANAKA signed its first joint venture agreement with ILJIN Electric – Korea to establish HANAKA-ILJIN Electrical Cable JSC, manufacturing and supplying low, medium and high-tension electrical cables. The company’s total registered capital is US$17 million, 46% by ILJIN, 44% by HANAKA and the remaining 10% sold to strategic partners and financial investors. With modern technology transfer and advanced management from ILJIN Electric, HANAKA-ILJIN will grow fast, meeting the demands of industrialization, modernization and export.
ILJIN Electric of ILJIN group was established in 1967, with its head office in Seoul and 7 member companies and factories all over South Korea. It operates in heavy industry, electrical equipment (medium-tension and underground super-tension cable up to 345 KV), light metals (including artificial diamond), pharmaceuticals, Nano technology and screen technology. ILJIN’s 2006 turnover was US$2.6 billion, and it targets US$3 billion in 2008. 2006 profit was US$220 million, while ILJIN Electric saw US$700 million turnover and US$100 million profit.
ILJIN has entered early in Vietnamese market, supplying and installing underground cable in Vietnam, including at the newly built International Convention Centre for the APEC Summit in Vietnam.
HANAKA-ILJIN Electrical Cable JSC started operating in June 2007 will continue rapid growth to meet the demands of industrialization, modernization and export. Turnover is expected at US$35 million in 2007, US$60 million in 2008, US$100 million in 2009. Average annual profit will be 7% of total turnover and 30-50% of registered capital.
In an attempt to diversify industries and products and strengthen the service sector in the investment structure, ensuring stable development during international economic integration, HANAKA has signed a series of strategic cooperation agreements with local and foreign financial and banking organizations, and economic groups.
Among the partners, Habubank will buy 10% of HANAKA registered capital. Golden Bridge financial group will buy 5% of shares and 5% of bonds from HANAKA group. Golden Bridge (Korea) was established in 2000, specializing in managing and operating investment funds worth US$300 million, and 10 member companies, including a financial company established in 2006 in Vietnam. Vietcombank stock management joint venture also buys HANAKA shares, in its capacity as a strategic investor.
Two other foreign groups, Sumitomo and Diethelm–DKSH also signed agreements with HANAKA to supply and export products. Sumitomo is a world leading Japanese trade and industry group, with hundreds of companies and branches in many countries. Diethelm-DKSH, with its head office in Switzerland, is a world leading supplier of technology, equipment and service in energy and electricity, transport, construction, mining, industrial and processing machines, electrical and medical equipment.
Sumitomo supplies materials with consistent quality and a good price, as well as technology transfer worth US$40 million a year to HANAKA group factories. For its part, Diethelm cooperates fully to export electrical products of HANAKA group to markets in South East Asia and the Middle East.
In implementing the instructions of the President and Prime Minister during their working visits to Laos to assist the country in economic restructuring, HANAKA group has produced at a good price nearly 1,000 transformers valued at VND32 billion. In May 2007, through Diethelm, HANAKA supplied Laos nearly VND100 billion worth of electrical cable to improve the national power grid.
HANAKA also agreed to supply an electrical network worth VND13.7 billion to Bach Dang ship building company of Vinashin group, to build 20,000 DWT ships. HANAKA will continue cooperating with Vinashin to establish a joint venture producing equipment for ship building. HANAKA has also agreed to supply electrical equipment for rural energy management in Vinh Phuc and Phu Tho provinces, with total value over VND84 billion, under the framework of World Bank development assistance.
Mr Man Ngoc Anh, Chairman & Director General of HANAKA group, said that with its own strength and multilateral cooperation with local and foreign partners, HANAKA will ensure the success of current and future projects.
HANAKA group was officially founded on February 14, 2007 by its predecessor Hong Ngoc Company, established since 1994. Young and powerful, HANAKA group focuses on five main sectors: industry, electrical equipment, construction, finance and trade-service. Members of the group have already begun investing in series of projects worth VND4,800 billion.
The decision at the first shareholders’ meeting April 22, 2007 to increase registered capital from VND500 billion to VND1,100 billion, and the 10 strategic cooperation agreements signed last week, create momentum for fast and sustainable development in the coming years.
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