The company that began the machine tool industry in Korea, Hwacheon Machine Tool

The Machine Tool Legend that Walked a Single Path for Sixty Years

Hwacheon Machine Tool, one of the three largest makers of machine tools in Korea, celebrates its 60th anniversary this year. Like people in their sixties, enough time has passed for Hwacheon to attain maturity as a business enterprise. A local company founded and matured in the city of Gwangju, Hwacheon is becoming a prestigious global name in the field of machine tools and we visited the company for the first cover story for our #Local Enterprise Odyssey# feature.

Around noon, October 18, 2012, the sky above Gwangju was high and blue, and a pleasant breeze swept the city with a distinct autumn flavor. After driving along the open city streets for half an hour from the Gwangju Express Bus Terminal, we arrived at the HQ of Hwacheon Machine Tool located in the Jangdeok-dong township of Gwangsan-gu district.

Hwacheon Machine Tool has made its home in Hanam Industrial Complex, the largest industrial belt in the Greater Gwangju Area that was established in 1991 (The 3rd Complex). Its neighbors are the factories of major conglomerates such as Samsung Electronics, LG Innotek, and Daewoo Electronics.

The public is not well aware of it, but Hwacheon has been the cornerstone of the development and growth of Korean#s machine industry. Hwacheon was the first company to build and introduce machine tools, known as the #machine making machines#, and its sixty year history is synonymous with the very history of Korea#s machine tool industry.

Since 2010, Hwacheon has been hosting an event under the name of #H-ROAD (The Road of Hwacheon)# once every two years. This is a large-scale event where the company invites many clients from Korea and overseas to showcase Hwacheon#s advanced technology that it has accumulated for over half a century. This year#s event was held between October 31 to November 3 at Hwacheon HQ, under the name of #Hwacheon Open House H-Road 2012# to mark the company#s 60th anniversary. At the #H-ROAD# event, Hwacheon introduced products of its newest machine tool technology to show to the world the pride of the #Machine Tool Legend#.

Hwacheon is one of the #Big Three# in Korea#s machine tool industry, the other two being Doosan Infracore and Hyundai Wia, both of which are subsidiaries of two major conglomerates. Industry experts say that, although Hwacheon produce less in quantity, its technology and quality are not lacking in the least when compared to them.

No matter which industry, it#s not easy for a mid-sized company to bump shoulders with conglomerates in the same market. It#s virtually impossible to compete against them unless that company has some kind of special competitive edge.

Then, what are Hwacheon Machine Tool#s key competitive strengths?

1. VT-1150, Hwacheon Machine Tool#s vertical turning center (lathe), cutting a gear component.

2. SIRIUS-UL+ is cutting the mold for large-screen display panel.

3. A high-speed vertical machining center for machining molds, SIRIUS-UL+ is the culmination of Hwacheon#s 60 years of advanced technology.

4. The world#s first smart machine tool #Hwacheon SMART-Ua that incorporates a new-concept convergence technology to allow anyone to get a perfect machining result with just four button operations.

Bumping Shoulders with the Conglomerates as a #Big Three#

Kim Ki tae, the director of Hwacheon Technology and Development Research Center and the plant manager for Hwacheon Machinery Division says, “Our strength is the sixty years of manufacturing techniques and accumulated know-how in the machine tool field. And there is the spirit of craftsmanship that has been passed down from previous owner-CEO to the current. It#s the combination of all that which manifests as the quality of our products.”

Hwacheon Machine Tool was founded in May 1952 during the Korean War by the late honorary chairman Kwon Seung gwan (1916-2004). The company took its first step as the unlimited partnership #Hwacheon Machine Works# in Gung-dong township in the city of Gwangju.

Founder Kwon started his career in his teen as an apprentice molder at a local foundry run by a Japanese to contribute to the livelihood of his family. His perseverance and workmanship earned the Japanese owner’s confidence.

In August 1945, Korea regained independence and a fateful opportunity came knocking on Kwon#s door. As the Japanese shop owner returned to his home country, he gave Kwon the ownership of his foundry and said, “You take care of it and run it with confidence.” With that foundry he inherited, Founder Kwon took his first step as an entrepreneur. At the time, the foundry used the Japanese name #Tomoe Ironworks#, which Kwon renamed to Hwacheon Machine Works during the Korean War in 1951. Hwacheon is made up of the words “wealth (hwa)” and “wellspring (cheon)”. Combined, the name means the wellspring or origin of wealth, which is the basis and purpose of all economic activities.

In late 1950s, Founder Kwon embarked on a new challenge of building a lathe. A lathe is a machine tool which rotates various metal workpieces on its axis for cutting, drilling or grinding. The lathe is the oldest and the most widely used of machine tools. At the time, there wasn#t a single lathe maker in Korea.

In August 1959, Kwon successfully built Korea#s first belt-driven lathe. It was an euphoric occasion for him, and the seed of the machine tool industry was sown for the first time in Korea. Since then, he walked a single path that is the machine tool.

Hwacheon holds the record for many firsts in Korean machine tool industry. The company has set a number of milestones, which include being the first to build an NC (numerical control) lathe in 1977, the first to exhibit its products at the IMTS in 1978, the first to build a CNC (computer numerical control) milling machine (a machine tool that uses rotating milling cutters to work on the workpiece) in 1983, and the first to build a horizontal machining center (a multiplex machine tool that automatically changes tools of various functions to work on the workpiece) in 1987, to name a few.

As the company grew in size, people around Founder Kwon suggested that he extend business to other areas such as land development or construction. But he rejected such temptations every time and said, I make my living working with iron and it#s not for me to do anything else.” It#s an episode that shows the conviction of a craftsman who stubbornly worked the path of machine tool all his life.

Currently, over 80% of the machine tool market in Korea is taken up by CNC machines. A country is considered an advanced machine tool country when CNC machines make up more than 80% of the country#s machine tool market. The world’s top machine tool industries, based on production quantity, are ordered as Japan, Germany, China, Italy, and Korea (or the U.S.). In terms of quality, the first is Germany and then followed by Japan, Korea, and Switzerland.

1. Hwacheon Group#s key executives have gathered at one place. (From left to right) President Kwon Young ho of Seoam Machinery Industry, CEO Kwon Young ryual of Hwacheon Group, President Cho Kyoo seung of Hwacheon Machinery, and President Kwon Young doo of Hwacheon Machine Tool.

2. The first belt-driven lathe built in Korea by Hwacheon in August 1959. This lathe became the steppingstone for the growth of the machine tool industry in Korea.

The Pioneer that Laid the Foundation of Korean Machine Tool Industry

From an industrial point of view, the machine tool industry is both unique and important, because it is the foundation for all other manufacturing industries including the machine industry. It is easy to understand when all countries classified as advanced machine tool industries are also the world#s leading manufacturing nations. Director Kim Ki taeexplains,

The machine tool is a machine that makes other machines. So in a way, it#s the mother of all other machines. Just as the offspring takes after its parents, a good machine tool will make good quality products and a bad machine tool will make bad quality products. In other words, machine tools are the foundation for the competitive strength of the manufacturing industry. Taking Japan as an example, you have to wonder how the country is holding up even after over twenty years of recession. I believe the secret is the firm support from Japan#s strong machine tool industry, and that#s why Japan#s manufacturing industry has been managing to stay competitive to this day,” explains Director Kim Ki tae

Hwacheon Machine Tool produces around 200 machine tools in a month, including the machine tools built by its affiliate Hwacheon Machinery. Each machine tool costs anywhere between tens of thousands of US Dollars to hundreds of thousands, depending on the model. Hwacheon’s competitors Doosan Infracore and Hyundai Wia are estimated to produce 800 and 500 machines each, respectively. Comparing the numbers alone shows that Hwacheon is quite behind the others in production, but not without a good reason, explains Kim.

“We operate based on the user-oriented business philosophy that we only produce products that will fully satisfy the preferences and demands of our clients. And because of this, the management has a firm policy to set the production target that is suitable for our capabilities, rather than seeking immediate gains.

The industry that uses machines tools most heavily is the automotive industry. The world’s automotive industry claims about 60% of the global machine tool production. The next biggest customer of machine tools is the electronics industry, which includes electrical, IT, and home appliances.

As such, Hwacheon#s main clients include Samsung Electronics and Hyundai- Kia Motors. Many of Samsung’s primary subcontract companies are also Hwacheon’s clients, and in particular, more than half of all mold cutting machines produced by Hwacheon are sold to these Samsung subcontractors.

Presently, Hwacheon Machine Tool has about a 60% share of Korea#s mold cutting machine market. Until the early 90s, Hwacheon concentrated only on manufacturing machines specialized for component processing. But a strategic decision to reduce the company’s dependence on a few large existing clients and develop a new market led the company to engage in the mold cutting machine business from 1996.

The decision has paid off, as shown by Hwacheon#s market share in the mold cutting machine market. And today, Hwacheon has become synonymous with mold cutting machines in related industries, not to mention that now Korea depends a lot less on imported mold cutting machines from Germany and Japan thanks to Hwacheon Machine Tool.

Hwacheon is also making inroads into overseas markets. The company supplies many of its products to clients in developed nations such as the U.S. and European countries, while India is the major market in Asia. Hwacheon hasn’t entered the markets in Japan and China, because the Japanese industries are traditionally loyal to products in Japan, and the Chinese business practice leaves much uncertainty. However, Hwacheon supplies machine tools to some Korean firms that have entered the Chinese market, Hyundai Motor Company being one of them.

Overseas exports make up over 40% of Hwacheon’s total sales, and the export sales increase every year. Hwacheon surpassed US$ 50 million in exports in 2006, and the figure is projected to reach US$ 100 million this year.

#35 Years of Zero Labor Disputes# – A Model Case of Labor Management

Hwacheon Machine Tool is also regarded as a role model for labor-management relations. The company has been free of labor disputes for impressive 35 years since the establishment of the company#s labor union in 1977. Just what is the company#s secret?

I believe it’s thanks to the late founder Kwon Seung gwan’s on-site-oriented, people-centered management philosophy that has taken root in our corporate culture. He was always warm and compassionate to the employees. Once he saw his son (Kwon Young doo, now President of Hwacheon Machine Tool) giving an employee talking to, and he scolded his son instead to treat the employees more warmly because it#s them who bring food to the table, explains Lee Seong ho, Director of the Support Division.

Also, the labor and the management meeting frequently to talk has been the foundation of our labor harmony. We talk to each other frankly and share information on company performance in a transparent manner, which helps us find a common ground.

Sixty years have passed since Hwacheon made Gwangju its home. Compared to the Greater Seoul Metropolitan area or the southeastern Yeongnam region of Korea, Gwangju hasn#t been the most ideal place to run a business because it lacks human resources, materials, and the industrial infrastructure. Even so, Hwacheon Machine Tool remained in the city. Could there be a reason for it? Perhaps it has something to with the stubborn spirit of craftsmanship that made the company to walk a single path for so many years.

“Our company#s owner-CEOs don#t really care much about convenience or profits. Normally, a local business in the regional area would relocate its headquarters to Seoul once it has grown to a certain size, because it#s easier to do business there. But our senior management never gave it a thought, let alone considering such an option. Late Founder Kwon used to emphasize the importance of the #birthplace#, and perhaps his shadow still hangs heavily over us.”

There stands a large headstone in Hwacheon’s main office with two letters engraved on it in Chinese, meaning #Virtuous Man#. It is a memorial stone erected by about sixty local business men of Gwangju in 1992, to commemorate the late founder’s contribution to the machine tool industry and the community. The founder has passed away, but his legacy Hwacheon Machine Tool will remain to the people of Gwangju as the symbol of #Virtuous Man# for a long time to come.

Tip | Current State of Machine Tool Specialist Hwacheon Group

Hwacheon Machine Tool and Three Affiliates Form the Core

Hwacheon Machine Tool is the parent company of Hwacheon Group, which is a vertical integration of machine tool related companies. In addition to Hwacheon Machine Tool, Hwacheon Group has as its affiliates Hwacheon Machinery, Seoam Machinery Industry, and TPS Korea. Hwacheon Machinery is engaged in the machine tools and automotive parts businesses, while Seoam Machinery Industry manufactures the key components for machine tools. TPS Korea is a company which specializes in manufacturing production facilities for mass-produced automotive parts.

Hwacheon Group’s founding principle is the #industrial patriotism#. Based on his three management concepts of #perseverance, honesty, and diligence#, the late founder Kwon became the pioneer of the machine tool industry in Korea. Currently, Hwacheon Group is led by the late founder#s three sons. Kwon Young ryual, the eldest, is the CEO of Hwacheon Group, while the second Kwon Young doo is President of Hwacheon Machine Tool and the youngest son Kwon Young ho heads Seoam Machinery Industry. The total annual revenue of Hwacheon Group is about US$ 550 million. In 2011, Hwacheon Machine Tool recorded about US$ 220 million in sales with around 300 employees.

Tip | The Seo’am Cultural Foundation, the sponsor of traditional culture

In 2010, Hwacheon Group established Seo’am Cultural Foundation in accordance with the will of the late founder who was passionate about art. Seo’am is the pen name of the late founder Kwon Seung gwan. The foundation was established to support the inheritance and development of Korea#s traditional culture, thereby honoring the late founder#s passion for the traditional Korean music and art. A staunch sponsor of artists in his life, late Kwon was close friends with Huh Baek ryeon (1891-1977), a famous traditional Korean painter, and also with Im Bang ul (1904-1961), who was a master pansori (traditional Korean one-man opera) singer. The Seo’am Cultural Foundation has also established the Seo’am Cultural Award in 2011 to sponsor the artists who made contributions to the inheritance and development of traditional culture. The foundation plans to expand its scope to scholarship programs, research fund projects, and cultural activities.

The memorial stone erected by the local business owners of Gwangju to commemorate the late founder Kwon Seung-gwan (photo on the left).

Premier Machine Tool Midwest is proud to be the exclusive representative of one of the Pioneers of Machine Tools – Hwacheon for the State of Wisconsin and UP of Michigan.

Call today to learn more: Sales 414-254-5150 / info@pmtmidwest.com

The company that began the machine tool industry in Korea, Hwacheon Machine Tool

The Machine Tool Legend that Walked a Single Path for Sixty Years

Hwacheon Machine Tool, one of the three largest makers of machine tools in Korea, celebrates its 60th anniversary this year. Like people in their sixties, enough time has passed for Hwacheon to attain maturity as a business enterprise. A local company founded and matured in the city of Gwangju, Hwacheon is becoming a prestigious global name in the field of machine tools and we visited the company for the first cover story for our #Local Enterprise Odyssey# feature.

Around noon, October 18, 2012, the sky above Gwangju was high and blue, and a pleasant breeze swept the city with a distinct autumn flavor. After driving along the open city streets for half an hour from the Gwangju Express Bus Terminal, we arrived at the HQ of Hwacheon Machine Tool located in the Jangdeok-dong township of Gwangsan-gu district.

Hwacheon Machine Tool has made its home in Hanam Industrial Complex, the largest industrial belt in the Greater Gwangju Area that was established in 1991 (The 3rd Complex). Its neighbors are the factories of major conglomerates such as Samsung Electronics, LG Innotek, and Daewoo Electronics.

The public is not well aware of it, but Hwacheon has been the cornerstone of the development and growth of Korean#s machine industry. Hwacheon was the first company to build and introduce machine tools, known as the #machine making machines#, and its sixty year history is synonymous with the very history of Korea#s machine tool industry.

Since 2010, Hwacheon has been hosting an event under the name of #H-ROAD (The Road of Hwacheon)# once every two years. This is a large-scale event where the company invites many clients from Korea and overseas to showcase Hwacheon#s advanced technology that it has accumulated for over half a century. This year#s event was held between October 31 to November 3 at Hwacheon HQ, under the name of #Hwacheon Open House H-Road 2012# to mark the company#s 60th anniversary. At the #H-ROAD# event, Hwacheon introduced products of its newest machine tool technology to show to the world the pride of the #Machine Tool Legend#.

Hwacheon is one of the #Big Three# in Korea#s machine tool industry, the other two being Doosan Infracore and Hyundai Wia, both of which are subsidiaries of two major conglomerates. Industry experts say that, although Hwacheon produce less in quantity, its technology and quality are not lacking in the least when compared to them.

No matter which industry, it#s not easy for a mid-sized company to bump shoulders with conglomerates in the same market. It#s virtually impossible to compete against them unless that company has some kind of special competitive edge.

Then, what are Hwacheon Machine Tool#s key competitive strengths?

1. VT-1150, Hwacheon Machine Tool#s vertical turning center (lathe), cutting a gear component.

2. SIRIUS-UL+ is cutting the mold for large-screen display panel.

3. A high-speed vertical machining center for machining molds, SIRIUS-UL+ is the culmination of Hwacheon#s 60 years of advanced technology.

4. The world#s first smart machine tool #Hwacheon SMART-Ua that incorporates a new-concept convergence technology to allow anyone to get a perfect machining result with just four button operations.

Bumping Shoulders with the Conglomerates as a #Big Three#

Kim Ki tae, the director of Hwacheon Technology and Development Research Center and the plant manager for Hwacheon Machinery Division says, “Our strength is the sixty years of manufacturing techniques and accumulated know-how in the machine tool field. And there is the spirit of craftsmanship that has been passed down from previous owner-CEO to the current. It#s the combination of all that which manifests as the quality of our products.”

Hwacheon Machine Tool was founded in May 1952 during the Korean War by the late honorary chairman Kwon Seung gwan (1916-2004). The company took its first step as the unlimited partnership #Hwacheon Machine Works# in Gung-dong township in the city of Gwangju.

Founder Kwon started his career in his teen as an apprentice molder at a local foundry run by a Japanese to contribute to the livelihood of his family. His perseverance and workmanship earned the Japanese owner’s confidence.

In August 1945, Korea regained independence and a fateful opportunity came knocking on Kwon#s door. As the Japanese shop owner returned to his home country, he gave Kwon the ownership of his foundry and said, “You take care of it and run it with confidence.” With that foundry he inherited, Founder Kwon took his first step as an entrepreneur. At the time, the foundry used the Japanese name #Tomoe Ironworks#, which Kwon renamed to Hwacheon Machine Works during the Korean War in 1951. Hwacheon is made up of the words “wealth (hwa)” and “wellspring (cheon)”. Combined, the name means the wellspring or origin of wealth, which is the basis and purpose of all economic activities.

In late 1950s, Founder Kwon embarked on a new challenge of building a lathe. A lathe is a machine tool which rotates various metal workpieces on its axis for cutting, drilling or grinding. The lathe is the oldest and the most widely used of machine tools. At the time, there wasn#t a single lathe maker in Korea.

In August 1959, Kwon successfully built Korea#s first belt-driven lathe. It was an euphoric occasion for him, and the seed of the machine tool industry was sown for the first time in Korea. Since then, he walked a single path that is the machine tool.

Hwacheon holds the record for many firsts in Korean machine tool industry. The company has set a number of milestones, which include being the first to build an NC (numerical control) lathe in 1977, the first to exhibit its products at the IMTS in 1978, the first to build a CNC (computer numerical control) milling machine (a machine tool that uses rotating milling cutters to work on the workpiece) in 1983, and the first to build a horizontal machining center (a multiplex machine tool that automatically changes tools of various functions to work on the workpiece) in 1987, to name a few.

As the company grew in size, people around Founder Kwon suggested that he extend business to other areas such as land development or construction. But he rejected such temptations every time and said, I make my living working with iron and it#s not for me to do anything else.” It#s an episode that shows the conviction of a craftsman who stubbornly worked the path of machine tool all his life.

Currently, over 80% of the machine tool market in Korea is taken up by CNC machines. A country is considered an advanced machine tool country when CNC machines make up more than 80% of the country#s machine tool market. The world’s top machine tool industries, based on production quantity, are ordered as Japan, Germany, China, Italy, and Korea (or the U.S.). In terms of quality, the first is Germany and then followed by Japan, Korea, and Switzerland.

1. Hwacheon Group#s key executives have gathered at one place. (From left to right) President Kwon Young ho of Seoam Machinery Industry, CEO Kwon Young ryual of Hwacheon Group, President Cho Kyoo seung of Hwacheon Machinery, and President Kwon Young doo of Hwacheon Machine Tool.

2. The first belt-driven lathe built in Korea by Hwacheon in August 1959. This lathe became the steppingstone for the growth of the machine tool industry in Korea.

The Pioneer that Laid the Foundation of Korean Machine Tool Industry

From an industrial point of view, the machine tool industry is both unique and important, because it is the foundation for all other manufacturing industries including the machine industry. It is easy to understand when all countries classified as advanced machine tool industries are also the world#s leading manufacturing nations. Director Kim Ki taeexplains,

�The machine tool is a machine that makes other machines. So in a way, it#s the mother of all other machines. Just as the offspring takes after its parents, a good machine tool will make good quality products and a bad machine tool will make bad quality products. In other words, machine tools are the foundation for the competitive strength of the manufacturing industry. Taking Japan as an example, you have to wonder how the country is holding up even after over twenty years of recession. I believe the secret is the firm support from Japan#s strong machine tool industry, and that#s why Japan#s manufacturing industry has been managing to stay competitive to this day,” explains Director Kim Ki tae

Hwacheon Machine Tool produces around 200 machine tools in a month, including the machine tools built by its affiliate Hwacheon Machinery. Each machine tool costs anywhere between tens of thousands of US Dollars to hundreds of thousands, depending on the model. Hwacheon’s competitors Doosan Infracore and Hyundai Wia are estimated to produce 800 and 500 machines each, respectively. Comparing the numbers alone shows that Hwacheon is quite behind the others in production, but not without a good reason, explains Kim.

“We operate based on the user-oriented business philosophy that we only produce products that will fully satisfy the preferences and demands of our clients. And because of this, the management has a firm policy to set the production target that is suitable for our capabilities, rather than seeking immediate gains.

The industry that uses machines tools most heavily is the automotive industry. The world’s automotive industry claims about 60% of the global machine tool production. The next biggest customer of machine tools is the electronics industry, which includes electrical, IT, and home appliances.

As such, Hwacheon#s main clients include Samsung Electronics and Hyundai- Kia Motors. Many of Samsung’s primary subcontract companies are also Hwacheon’s clients, and in particular, more than half of all mold cutting machines produced by Hwacheon are sold to these Samsung subcontractors.

Presently, Hwacheon Machine Tool has about a 60% share of Korea#s mold cutting machine market. Until the early 90s, Hwacheon concentrated only on manufacturing machines specialized for component processing. But a strategic decision to reduce the company’s dependence on a few large existing clients and develop a new market led the company to engage in the mold cutting machine business from 1996.

The decision has paid off, as shown by Hwacheon#s market share in the mold cutting machine market. And today, Hwacheon has become synonymous with mold cutting machines in related industries, not to mention that now Korea depends a lot less on imported mold cutting machines from Germany and Japan thanks to Hwacheon Machine Tool.

Hwacheon is also making inroads into overseas markets. The company supplies many of its products to clients in developed nations such as the U.S. and European countries, while India is the major market in Asia. Hwacheon hasn’t entered the markets in Japan and China, because the Japanese industries are traditionally loyal to products in Japan, and the Chinese business practice leaves much uncertainty. However, Hwacheon supplies machine tools to some Korean firms that have entered the Chinese market, Hyundai Motor Company being one of them.

Overseas exports make up over 40% of Hwacheon’s total sales, and the export sales increase every year. Hwacheon surpassed US$ 50 million in exports in 2006, and the figure is projected to reach US$ 100 million this year.

#35 Years of Zero Labor Disputes# – A Model Case of Labor Management

Hwacheon Machine Tool is also regarded as a role model for labor-management relations. The company has been free of labor disputes for impressive 35 years since the establishment of the company#s labor union in 1977. Just what is the company#s secret?

I believe it’s thanks to the late founder Kwon Seung gwan’s on-site-oriented, people-centered management philosophy that has taken root in our corporate culture. He was always warm and compassionate to the employees. Once he saw his son (Kwon Young doo, now President of Hwacheon Machine Tool) giving an employee talking to, and he scolded his son instead to treat the employees more warmly because it#s them who bring food to the table, explains Lee Seong ho, Director of the Support Division.

Also, the labor and the management meeting frequently to talk has been the foundation of our labor harmony. We talk to each other frankly and share information on company performance in a transparent manner, which helps us find a common ground.

Sixty years have passed since Hwacheon made Gwangju its home. Compared to the Greater Seoul Metropolitan area or the southeastern Yeongnam region of Korea, Gwangju hasn#t been the most ideal place to run a business because it lacks human resources, materials, and the industrial infrastructure. Even so, Hwacheon Machine Tool remained in the city. Could there be a reason for it? Perhaps it has something to with the stubborn spirit of craftsmanship that made the company to walk a single path for so many years.

“Our company#s owner-CEOs don#t really care much about convenience or profits. Normally, a local business in the regional area would relocate its headquarters to Seoul once it has grown to a certain size, because it#s easier to do business there. But our senior management never gave it a thought, let alone considering such an option. Late Founder Kwon used to emphasize the importance of the #birthplace#, and perhaps his shadow still hangs heavily over us.”

There stands a large headstone in Hwacheon’s main office with two letters engraved on it in Chinese, meaning #Virtuous Man#. It is a memorial stone erected by about sixty local business men of Gwangju in 1992, to commemorate the late founder’s contribution to the machine tool industry and the community. The founder has passed away, but his legacy Hwacheon Machine Tool will remain to the people of Gwangju as the symbol of #Virtuous Man# for a long time to come.

Tip | Current State of Machine Tool Specialist Hwacheon Group

Hwacheon Machine Tool and Three Affiliates Form the Core

Hwacheon Machine Tool is the parent company of Hwacheon Group, which is a vertical integration of machine tool related companies. In addition to Hwacheon Machine Tool, Hwacheon Group has as its affiliates Hwacheon Machinery, Seoam Machinery Industry, and TPS Korea. Hwacheon Machinery is engaged in the machine tools and automotive parts businesses, while Seoam Machinery Industry manufactures the key components for machine tools. TPS Korea is a company which specializes in manufacturing production facilities for mass-produced automotive parts.

Hwacheon Group’s founding principle is the #industrial patriotism#. Based on his three management concepts of #perseverance, honesty, and diligence#, the late founder Kwon became the pioneer of the machine tool industry in Korea. Currently, Hwacheon Group is led by the late founder#s three sons. Kwon Young ryual, the eldest, is the CEO of Hwacheon Group, while the second Kwon Young doo is President of Hwacheon Machine Tool and the youngest son Kwon Young ho heads Seoam Machinery Industry. The total annual revenue of Hwacheon Group is about US$ 550 million. In 2011, Hwacheon Machine Tool recorded about US$ 220 million in sales with around 300 employees.

Tip | The Seo’am Cultural Foundation, the sponsor of traditional culture

In 2010, Hwacheon Group established Seo’am Cultural Foundation in accordance with the will of the late founder who was passionate about art. Seo’am is the pen name of the late founder Kwon Seung gwan. The foundation was established to support the inheritance and development of Korea#s traditional culture, thereby honoring the late founder#s passion for the traditional Korean music and art. A staunch sponsor of artists in his life, late Kwon was close friends with Huh Baek ryeon (1891-1977), a famous traditional Korean painter, and also with Im Bang ul (1904-1961), who was a master pansori (traditional Korean one-man opera) singer. The Seo’am Cultural Foundation has also established the Seo’am Cultural Award in 2011 to sponsor the artists who made contributions to the inheritance and development of traditional culture. The foundation plans to expand its scope to scholarship programs, research fund projects, and cultural activities.

The memorial stone erected by the local business owners of Gwangju to commemorate the late founder Kwon Seung-gwan (photo on the left).

Premier Machine Tool Midwest is proud to be the exclusive representative of one of the Pioneers of Machine Tools – Hwacheon for the State of Wisconsin and UP of Michigan.

Call today to learn more: Sales 414-254-5150 / info@pmtmidwest.com