The Korean automotive company connected with suppliers in Turkey for its new assembly plant in Romania. This article is based on insights gained from the supplier selection process in the Turkish automotive aftermarket conducted in 2018.
Suppliers for the Romanian assembly plant
KMT, a company under the South Korean SH Group, collaborated with the Korean consulting firm PRZ to find suppliers for its assembly plant in Romania. KMT, a parts supplier specializing in harmful exhaust gas reduction and high-efficiency engine control technologies for diesel engines, was matched with automotive-focused Turkish and Eastern European suppliers for products such as “turbochargers, intake manifolds, EGR valves,” and processes including “plastic injection, machining, aluminum die casting, and sintering.”
For this project, discussions were held with 54 Turkish companies to assess their suitability as KMT suppliers. 20 companies that were equipped to produce these parts with the necessary technology and machinery and were interested in long-term cooperation were identified. Additionally, suppliers from Czechia and Slovakia (27), Hungary (21), Poland (11), and Romania (16) were matched with the project.
Supplier Requirements
Interviews were conducted to determine if the products provided by potential suppliers met customer needs and quality standards. Suppliers were required to provide reports on quality standards, technical specifications, delivery times, and other performance criteria, including:
- Company Website
- Location (city and country)
- Establishment (year)
- Employees (number of persons)
- Sales turnover (2017)
- Main customers (within and outside the automotive sector)
- Main products (within and outside the automotive sector)
- Export ratio (%)
- Automotive products ratio (%)
- Production facility
- Inspection and test facility
- Certification (IATF16949)
- Tool design and fabrication
- Heat treatment and plating
Basic Requirements:
- Auto part suppliers, min. over 30%
- Tier 2
- TS16949 (under audit IATF16949)
- High-quality AL die-casting technology with machining process
- Good experience in producing brake components, roof rails, steering parts, car seat components, gear shifts, gas, and pneumatic parts
- Machine capacity: 80~160 tons
- Electroplating, powder and spray coating, assembly
Company profiles, financial status, past performance, and references of potential suppliers were gathered. Quality management systems, production capacities, cost structures, delivery times, compliance, and certification were thoroughly examined. Additionally, customer surveys were conducted and visits were planned.
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