TYM Becomes South Korea’s #1 Agricultural Machinery Brand
- The integration of the two companies combines a total of 120 years of history, the effect of the merger is overarching; enhancing production capacity, human and material resources, and improving market performance.
- TYM sales to exceed 1 trillion won this year, on the back of innovative next-generation technology and overseas market expansion, and is on track to become a global top 10 contender within 2 to 3 years.
- TYM previously announced its move to implement ESG management, a first in the industry. It achieved a grade of “A” in the first year and is on target to achieve a grade of “S” to cement its position as an eco-friendly company.
TYM has become South Korea’s largest agricultural machinery brand through an official merger with Kukje Machinery.
TYM (Chairman: Hiyong Kim, CEO: Dohoon Kim / formerly Tongyang Moolsan Co., LTD / 002900), one of South Korea’s leading agricultural machinery companies, announced that it will complete the merger process with Kukje Machinery and officially launch as TYM group on the 1st of July.
After initially announcing the merger in April, the integration of the two companies will secure TYM’s position as the leading domestic brand, serving as a foundation for growth to enter the global Top 10.
Through this merger, TYM expects sales to grow by more than 1 trillion won (about $770M) this year through ripple effects in production, operation, and financial results. TYM plans to enhance its competitiveness by integrating production processes to eliminate redundant costs and investments. It also expects to increase operating leverage by expanding the scale of production, improving cost competitiveness through in-house engine manufacture, and systematizing engine supply.
Additionally, TYM plans to enhance work efficiencies through the consolidation and effective assignment of human resources. The goal is to dramatically improve management efficiency and secure future growth engines by unifying the decision making process.
It will also strengthen its influence in the global market. TYM currently has more than 300 dealers in North America and it is predicted to enlarge its market share in North America by extending touchpoints with new dealers. Based on its production capacity in North America, further investment in other countries will also be considered.
Both domestic and international consumers will be able to receive comprehensive services through more than 600 dealers around the world. TYM plans to expand the range of product choices and improving customer satisfaction by refining differentiated services by consolidating customer support and improving parts distribution.
In the future, TYM will accelerate from the current ESG grade of “A” to “S” based on the strength of being the first domestic agricultural machinery company to implement ESG management. One of the strategies in pursuit of TYM’s goal of sustainable agriculture is to strictly pursue environmental management in accordance with ISO standards starting with the Iksan and Okcheon factories. Furthermore, TYM has identified transparent management as a strategy to fulfill the internal policy of establishing conditions for a stable agricultural industry. Carrying out its responsibilities as a member of society, TYM has established an audit committee, and plans to expand its donation programs to local communities and farmers.
TYM also plans to leverage its interests in Agtech to kick-start a movement towards cutting-edge agriculture. In March 2022, TYM launched its own platform service, ’MYTYM', a telematics-based tractor management service. The platform’s objective is to establish a tool for future smart farms. Moreover, as the first company in Korea to develop self-driving technology for tractors, it plans to lead the way in commercializing tractors with stage-2 self-driving technology.
A TYM official stated: “In addition to recording the highest operating profit among domestic agricultural machinery companies this year, we will become a singular brand by consolidating with Kukje Machinery, a company which retains a long history and solid production capabilities. Launching as one company will allow us to further our innovative values.” He went on to say, “We will leap forward as a global brand beyond our position as Korea’s leading agricultural machinery company with a combined 120-years of history; the longest in the nation. (TYM 70 years, Kukje Machinery 55 years).”
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