Daejeon: Hyundai Motor Co. and its smaller affiliate Kia Corp. announced plans on Monday to seek alternative suppliers after a fire at a significant auto parts contractor raised concerns about possible supply chain disruptions.
According to Yonhap News Agency, the devastating fire occurred at Anjeon Industry in Daejeon, approximately 140 kilometers south of Seoul, last Friday. The incident resulted in 14 fatalities and left 60 individuals injured, effectively halting the supply of parts to its clients, including Hyundai and Kia.
The automakers rely on Anjeon Industry for engine valves, a crucial component that controls the intake of air and fuel into engine cylinders and the expulsion of exhaust gases. In response to the situation, a Hyundai official stated, "The company has a certain level of engine valve inventories and will find alternative suppliers to Anjeon Industry to avoid disruptions to planned vehicle production."
Anjeon Industry is a major producer in the engine valve market, manufacturing over 70 million units annually, with the majority of its production supplied to Hyundai and Kia. The search for alternative sources reflects the automakers' proactive measures to maintain their production schedules amidst the unexpected supply chain interruption.