Residing in the center of Europe, Luxembourg is the leading small but strong countries in Europe. It is recognized by its strong finance, and as one of the best country for a foreigner to live in. Right here, Hyosung operates a production facility for its global No.1 tire cords. Here is the story of Hyosung Luxembourg S.A. challenging with proprietary technology, and materializing customer satisfaction with the highest quality.
Luxembourg, a small but strong country.
With a mere population of 540,000 people, Luxembourg is one of the wealthiest country of the world in GDP (Highest GDP in 2013 at 1 USD 110,000). As a fraction of Benelux, Luxembourg is adjacent to strong countries, Germany to the east, Belgium to the west, and France to the south. Its territory is only 4 times of Seoul (2,586㎢) but is the financial capital of Europe, and a global economic hub, with its service industry contributing 86% of the gross national industries. Benefiting from the EU-Korea Free Trade Agreement, more Korean entities are sighting Luxembourg as their front post to the European market.
From steel to finance, now to IT.
Up until the mid-19th Century, Luxembourg was a poor country with the commonwealth suffering from starvation. Since discovering rich steel resources along its southern border with France in 1911, ARBED (a Luxembourg-based steel and iron producing company currently operated under the name “ArcelorMittal”) was founded to become the anchor to national development. Throughout the 40th and 50th of the 20th century, a customs agreement was executed to form the Benelux Union, and Luxembourg strengthened its bond with its neighbors by becoming a founding state of both EEC (Europe Economic Comminute) and the subsequent EU (European Union). Since then with the help of a government-driven industrial diversity initiative, Luxembourg started to accommodate international corporations. These efforts along with governmental driven financial industry revitalization prevailed where Luxembourg successfully hosted over 50 international corporations in 1972 including funds and investment banks. Its financial industry did not know how to pump the brakes, occupying over 25% of the GDP in 2000. In response to the global economic crisis in 2008, Luxembourg sought the IT industry. Now Luxembourg is the home of the European head offices of global IT giants including Microsoft, Amazon, Skype and eBay.
Korean companies in Luxembourg
Commencing its engagement with Korea during the Korean War, as a member of the United Nations Forces, Luxembourg was designated as a foreseeable diplomatic partner after War had ended. Luxembourg and Korea established a diplomatic relations in 1961, and both countries has been strong allies to each other ever since. Along with establishing a diplomatic relations in November of 1961, both countries executed an Economic Cooperation and Air/Sea Transport Agreement. Several notable Korean corporates operating in Luxembourg are Hyosung, KISWIRE and Samhwa Steel, a specialized construction material supplier. Around 100 Korean nationals reside in Luxembourg including, residential employees and their families.
Hyosung in Luxembourg
Since purchasing a tire cord factory in Luxembourg from Goodyear, a worldwide tire supplier, in 2006, Hyosung is seeking businesses in major global markets especially in Europe. Orienting toward its Luxembourg office, producing Hyosung’s global no.1 product tire cords, Hyosung is also operating a fiber production facility sited in Colma-Berg, which has been in operation for over 45 years. These facilities have accumulated quantitatively and qualitatively excessive technical know-hows from its experiences in fiber tire cord production from nylon and polyester products to rayon, aramid, and hybrid tire cord products. And taking advantage of its dead-center location in Europe, which provides a close proximity to the major tire suppliers in Europe, Hyosung Luxembourg S.A. is also functioning as the key factor in global customer relations.
Hyosung Luxembourg S.A. pursuing the highest quality and customer satisfaction
“The 130 residential and local employees of Hyosung Luxembourg S.A. endeavor with the pride as a Hyosung People to provide the best products at the highest quality to satisfy our customers, the prestigious European tire suppliers in the hometown of automobile and tire industry.”
- LEE Kangjoon, Managing Director, Hyosung Luxembourg S.A. -
Written by / KWON Ohsang (Deputy Section Chief, Public Relations Team 3)
Photo | LEE Doyoung (Laon Studio)