COMPANY
Leader in the localization of parts, YEONHAB PRECISION
Localization
Performance of development for localization
Founded in 1980 with the aim of "localization development of defense parts," Yeonhab Precision has successfully completed the localization development of 30,000 core parts since it is foundation, reducing the defense budget by about 1 trillion won compared to overseas imports.
Yeonhab Precision's passion for localization of key components and it is constant efforts are a remarkable achievement.
- Localization of core parts by Yeonhab Precision
- ① An estimated 1 trillion won in defense
budget savings compared to imports - ② Contributing to national self-defense through
the development of core parts of the weapon system - ③ Creating 470 Direct Employment Jobs
- ④ Exporting more than 12% of sales independently
"An estimated 1 trillion won in defense budget savings"
through the development of localization of core components
| Items for localization | After localizationNumber of total items for delivery | Amount after development (in million Won) | Saving in national defense budget | ||
|---|---|---|---|---|---|
| Revenues | Amount of deliveries | Saved amount | |||
| Localization of national stocknumber item (Cable assembly) | Certificate of development3,153 items | 1,247,124 | 912,955 | 334,168 | About 330 billion won in foreign currency spending is saved by localization compared to the unit price of existing imports |
| Application of Weapon System for Localized Parts Development Products | 2,721,262 items | 2,370,391 | 1,698,909 | 671,482 | Foreign currency spending of about 670 billion won is saved by applying localized developments to imports of various weapons systems |
Effect of expanded localization and development
Localization formula
- ○ Parts localization rate formula satisfies the parts localization rate of 70% rather the localization in name only as almost all processes shall be localized ranging from parts design to the production and supply
- ○ Period when the parts localization was active the most
Starting point of parts localization
- ○ Mr. Yoon Gwang-Woong, former minister of national defense (Chosun Hotel)
- - Worsened profit due to the use of imported parts
- - Government’s implementation of policy for strong localization of parts
- ○ Development for localization of 120,000 parts (items for localization)
- ○ Expansion of Yeonhab Precision’s facilities and full efforts for localization of parts