South Korean auto parts maker Myoung Shin Industrial will wrap up the construction of its hot stamping factory in Texas next month and begin production to meet demand from customer Tesla, TheElec has learned.
Hot stamping uses a press on steel plates heated at over 900 Celsius and freezes them instantly afterward which results in a durable and lighter car body.
Myoung Shin, which was founded in 1983, began supplying such parts to Hyundai Motor in 2009.
It recently introduced what it calls a hybrid hot stamping process that heats up the steel plates faster.
The car body made through hot stamping, being lighter and more durable, can extend the drive distance of electric vehicles.
Myoung Shin formed its US subsidiary __ Simwon NA __ in March this year and rented out a space at Carlisle county in Texas to build its factory.
The company was hiring workers for the factory, which will supply all the parts it produces the Tesla, a person familiar with the matter said.
The parts will likely be used in Model Y and later for Tesla’s electric trucks, they added.
The supply will likely boost Myoung Shin’s earnings next year __ South Korean analysts expect the company to record 1.41 trillion won in revenue in 2022, which will be an increase of 74.8% year-on-year.