DMG Group Investment Targets South Korea Plant in 2028

DMG Group Investment will total approximately KRW 100 billion for a new manufacturing plant in South Gyeongsang Province, South Korea, as the group prepares to relocate its production base in China. Construction is scheduled to begin in 2028, with the project expected to create 150 jobs. The facility will produce automotive components and power supply equipment, extending the group’s manufacturing footprint in its home market. The investment also supports the group’s plan to expand its transformer radiator business as global demand for power transformers grows, while shifting production capacity from its existing Chinese base to South Korea.

Reshoring Production From China

The group produces engine components including cam lobes and pistons, along with chassis components such as CV joints. Its Chinese manufacturing operations have been based at Daemyung Precision Machinery (Zhangjiagang) since 2006. Under the new investment plan, DMG Group intends to transfer that production base to South Gyeongsang Province. The move represents a manufacturing reshoring effort while maintaining the group’s focus on automotive component production and adding capacity for equipment serving the power infrastructure market.

New Plant to Support Multiple Businesses

The new facility is intended to combine automotive component manufacturing with power supply equipment production, giving the group a broader production role within South Korea. The approximately KRW 100 billion commitment covers the planned plant investment, while the expected creation of 150 jobs indicates a direct employment contribution from the project. The relocation also changes the geographic position of production that has been conducted in China since 2006. At the same time, expanding transformer radiator operations connects the project with the group’s stated response to increasing global demand for power transformers.

Construction Planned for 2028

The project’s timeline places construction at the center of the group’s next phase of manufacturing restructuring, with work scheduled to start in 2028. Until then, the existing Chinese production base remains part of the group’s manufacturing history, while the planned South Korean plant establishes the destination for the relocated operations. The investment also links two business areas: established automotive components such as engine and chassis parts, and transformer radiator products associated with power supply equipment. Together, these elements define the scope of the planned facility and the group’s broader reshoring and capacity-expansion strategy.

Industry Impact & Outlook

The investment could affect the regional manufacturing base by adding production capacity and 150 expected jobs in South Gyeongsang Province, while the relocation shifts selected manufacturing activity from China to South Korea. For DMG Group, the project also connects automotive component operations with an expansion in transformer radiator production, potentially giving the company greater capacity to serve two distinct industrial demand areas from its home market. The next major milestone identified in the plan is construction beginning in 2028. Its significance will therefore depend on how the facility is developed, how production is transferred, and how successfully the expanded transformer radiator business responds to global power transformer demand.

Frequently Asked Questions

Why is DMG Group moving production to South Korea?
South Korea is the destination for the group’s relocated Chinese production base, with construction of the new plant scheduled to begin in 2028. The approximately KRW 100 billion project will produce automotive components and power supply equipment in South Gyeongsang Province. It is also expected to create 150 jobs and support expansion of the transformer radiator business. The plan therefore combines reshoring with additional manufacturing capacity, while preserving the group’s established automotive component activities and expanding its role in equipment connected to the power transformer market.