Hanon Systems mulls name change, relocation of office space

Hanon Systems CI

Hanon Systems Co., the world’s second-largest automotive thermal management system company based in South Korea, is considering a name change and relocation of its office space after being acquired by Hankook Tire & Technology Co.

Industry sources said on Tuesday that an integration task force, or PMI Task Force, will drive these changes following the signing of the merger and acquisition agreement between Hanon Systems and Hankook Tire.

The most notable change would be the rebranding.

Hankook & Company Co., the holding company of Hankook Tire, has been acquiring various auto parts companies, incorporating the “Hankook” brand into subsidiary names to align and integrate these entities with the holding company.

Its current subsidiaries include Hankook Engineering Works Co., which engages in smart farm and factory businesses; Hankook Networks Co., which specializes in information technology (IT) services and logistics engineering; and Hankook Precision Works Co., which manufactures precision parts.

If the name change goes through, it will be the first time Hanon Systems has changed its signage in about a decade, having been rebranded in 2015.

Founded in 1986 as Halla Climate Control Corp. in a joint venture between Halla Group and Ford Motor Co, it was rebranded as Halla Visteon Climate Control Corp. in 2013 after Ford divested its climate control unit. Korean private equity firm Hahn & Company acquired the company in 2015, and then rebranded it as Hanon Systems.

Industry observers see this rebranding as reflective of Hankook & Company Chairman Cho Hyun-bum‘s long-standing interest in Hanon Systems, given his nearly decade-long efforts to acquire the company.

Changes in management are also anticipated.

Hankook & Company recently appointed Lee Soo-il, vice chairman of Hankook Tire, as the head of the PMI Task Force whose term will conclude around February 2025. Some members of the task force are expected to transition to Hanon Systems after this period, potentially bringing a more localized leadership team.

Hanon Systems is currently led by co-CEOs Nurdal Kucukkaya and Nagasubramanian Ramachandran, both former Ford executives, with their terms ending in March 2025.

Hanon Systems’ main office, currently located in Ferrum Tower in Jung District, central Seoul, will also move to Hankook Tire’s headquarters in Pangyo, Gyeonggi Province, in early 2025. The Ferrum Tower location is shared with its major stakeholder, Hahn & Company.

Moving to Pangyo is expected to allow the company to synergize its Korean business and headquarters functions with Hankook Tire.

Industry observers anticipate that Hanon Systems will become more aggressive in electric vehicle thermal management investments through this acquisition.

As EV battery performance and range are highly dependent on temperature, thermal management systems, such as heat pumps, are emerging as a strategic area for automakers, parts suppliers, and electronics companies.

Hanon Systems developed the world’s first fourth-generation battery thermal management system, which is supplied to Kia Corp.’s EV3 and will be featured in the upcoming EV4 from the first half of 2025. The M&A process between Hanon Systems and Hankook Tire is expected to be completed early next year.

But an official from Hankook & Company said that “no decisions have been made regarding the name change or personnel relocations.”