South Korea’s seventh-largest conglomerate Hanwha Group has joined a race to win the burgeoning robot market, with the official launch of Hanwha Robotics Co. that will develop collaborative and service robots using its robotics and autonomous mobility technologies.
Hanwha Robotics was officially inaugurated on Wednesday, less than two months after its biggest stakeholder Hanwha Corp. announced a plan to spin off the collaborative robot and factory automation (FA) businesses from its total engineering solution division Hanwha/Momentum and set up Hanwha Robotics.
In mid-August, Hanwha’s board of directors approved the separation plan, including the company's investment of 42.4 billion won ($31.2 million) to own a 68% stake in Hanwha Robotics. The remaining 32% is held by Hanwha Resorts & Hotels Co., the conglomerate’s hotel and resort operating unit.
After the demerger, Hanwha/Momentum will focus on its mainstay businesses -- rechargeable batteries, renewable energy and displays.
Hanwha is betting big on robotics technology in anticipation of the global robot market’s rapid growth driven by the rising demand for artificial intelligence and Internet of Things-powered smart factories and contactless services following COVID-19 outbreaks.
In particular, the global collaborative robot market more than doubled to 2.2 trillion won in 2022 from 2020, according to MarketsandMarkets. The market is forecast to grow to 6.5 trillion won in 2025.
Collaborative robots can work along with humans within a shared space, or where humans and robots are nearby. They are getting more advanced with AI and big data.
INTENSIFYING COMPETITION
Other Korean conglomerates are also beefing up their robotics technology capabilities.
Hanwha Robotics also aims to expand its presence abroad via its over 30 offshore bases by expanding its robot lineup.
Its collaborative robot sales in North America and Europe account for more than 60% of its total global sales, according to the company.
Kim Dong-seon inspects Hanwha's collaborative robot (Courtesy of Hanwha)
While focusing on increasing its market share with collaborative robots, it will also develop other types of robots using its automated guided vehicle (AGV) and autonomous mobile robot (AMR) technologies.
Kim Dong-seon, the third son of Hanwha Group Chairman Kim Seung-youn, will lead Hanwha Robotics’ strategic planning department.
The youngest son is also the executive director for future strategy of Hanwha Hotels & Resorts.
Kim vowed to develop a wide range of robots, including food tech and security service robots aimed to improve the quality of life.
With Hanwha Hotels & Resorts as its second largest stakeholder, Hanwha Robotics is expected to develop various service robots for the food and retail industries, such as cooking robots and automated building management systems.
Hanwha Robotics will be headed by Seo Jong-hwi, Hanwha/Momentum’s executive director, a robotics expert who previously led Hanwha/Momentum's FA development.
Seo said the company will continue to invest in core software development to further bolster its robotics technologies.
Write to Hyung-Kyu Kim at khk@hankyung.com Sookyung Seo edited this article.
