S.Korea’s Hyundai Mobis aims to separate key businesses into new units

South Korean auto parts maker Hyundai Mobis Co Ltd (012330.KS) said on Thursday it was considering separating its modules and key parts production businesses into new wholly owned units in an effort to enhance each segment’s expertise and maximise efficiency.

Hyundai Mobis, an affiliate of automaker Hyundai Motor Co (005380.KS), said in a regulatory filing it aims to hold a board meeting in September to approve plans to separate the businesses, expected to be launched in November.

The new units will be in charge of manufacturing operations, including facility and labour management, while the central management of the company will be focusing on securing future mobility technologies, as well as developing new products.

Shares of Hyundai Mobis closed down 3% at their lowest since July 13while the benchmark KOSPI (.KS11)fell 0.3%, before Hyundai Mobis disclosed its plans.