Neu-Isenburg, Germany, 18 October 2022 – Model Solution, a subsidiary of the premium tyre maker Hankook & Company Group (formerly Hankook Tire Group), last week became the first Korean prototype company to be listed on the KOSDAQ technology index. Due to strong demand and a favourable outlook for the entire competitive environment, the offering was classed as a blue chip share from the outset. The final issue price of KRW 27,000 (approx. EUR 20) was at the upper end of the announced price range. With the IPO, Model Solution raised approximately KRW 27 billion, or just under EUR 20 million.
Through the IPO, Model Solution plans to secure stable long-term growth and make a quantum leap to the forefront of its industry as an innovative manufacturing company. The company initially plans to develop its own hardware brand. This will include pilot testing of the augmented reality (AR) head mounted display (HMD) prototype developed over the past year, to be followed by the start of series production and the market launch.
Sights set on new customers and business segments
“In order to stay ahead of industry trends, we will continue to expand our business portfolio by employing new business models, and integrating the latest technologies such as augmented reality into our products. We are also preparing to secure customers in new fields such as medical devices, robotics and aerospace,” says Byungil Woo, CEO of Model Solution.
Founded in 1993, Model Solution is a total solution provider that serves all product development stages from design to prototyping, precision computer numerical control (CNC) machining, tooling and moulding, and contract manufacturing for various sectors including electronics, medical devices, consumer goods, robotics and the automotive industry. The company already serves more than 500 customers worldwide, including Google, Amazon, Tesla, Samsung and Hyundai Motors. Since being acquired by Hankook & Company in 2018, Model Solution has shown continuous growth in sales and last year reported sales of KRW 61.1 billion (approx. EUR 44 million). This represents a year-on-year increase of 9.8%. The sales for the first half of this year totalled KRW 32.2 billion (approx. EUR 23 million).
Meanwhile Model Solution has established a new integrated operation centre in the Ojeong Industrial Complex in Bucheon, Korea to further expand its business, increase its presence as a total solution provider and improve its ability to meet the expectations of global customers. In addition, Model Solution established a new Contract Manufacturing Business Division in Bucheon in March to oversee low-to-medium volume production runs. In July it relocated the Tooling & Moulding Division to the new Bucheon centre. In the first quarter of 2023, the company also plans to complete the transfer of the Precision CNC Machining Division. By combining these activities at a central location, the company expects to realise synergies for all divisions.
Model Solution has three business locations and one global sales base. These include the two existing operation facilities for prototype production in Seoul, the integrated operation centre for tooling and moulding and contract manufacturing in Bucheon, and the North American sales base in Silicon Valley. In addition, the company is planning to set up new sales bases in the eastern USA and Germany to expand its global market presence.
Caption image 3 (from second from the left) : COO of Hankook & Company Jongseon Ahn, CEO of Model Solution Byungil Woo, President & CEO of Hankook Tire & Technology Sooil Lee