MEXICO
a global player comes of age









Lic. Young Jin Suh, General Director of Daewoo Electronics de Mexico

Interview with Lic. Young Jin Suh,
General Director
Read our exclusive interview
Daewoo Electronics Corporation de Mexico

Lic. Young Jin Suh,
General Director

Contacts:
Alce Blanco N° 36
Fracc. Ind. Alce Blanco
Naucalpan, C.P. 53370
Estado de Mexico, MEXICO
Tel: (52) 53 29 24 00
Fax: (52) 53 29 24 13

Lic. Shin Chul Chung,
Marketing Manager
Tel: (52) 53 29 24 05
Fax: (52) 53 29 24 33 6 59
E-mail: scchung@prodigy.net.mx
Website: www.daewoo.com
www.dwe.co.kr

DAEWOO ELECTRONICS CORPORATION DE MEXICO

PROFILE

Since its founding in 1971, the growth of Daewoo Electronics has been firmly based on a two-pronged strategy which puts equal emphasis on globalization and technology. Its pursuit of localization under the larger goal of global management has enabled Daewoo Electronics to grow into a bona-fide multinational, with 33 manufacturing subsidiaries, 34 sales subsidiaries, 19 branches and eight R&D centers in more than 40 countries around the world. Regional headquarters located in five countries make significant contributions to ensuring truly localized management on each continent, further enhancing Daewoo Electronics' presence in the global market.

Another main force backing the Company's vision to be among the world's leading home electronics makers is its commitment to technology. Over the years, Daewoo Electronics has made numerous innovations that have been introduced to consumers through its products. Recent highlights include the world's first development of TMA technology and commercialization of PDP TVs.

With its operations classified into three business groups - A/V and home appliance products, core components and next-generation multimedia products - Daewoo Electronics aims to maximize organizational synergy through the organic integration and close coordination of its diverse activities in these areas.

Through its extensive global network, Daewoo Electronics achieved total sales of W4,699.5 billion in 1998, representing 21.8 percent growth from 1997. Of the total, overseas sales accounted for 87 percent with an amount of W4,095 billion, also a 40. 5 percent growth from a year ago.

In the years to come, Daewoo Electronics' reputation as an internationally admired and respected customer-oriented multimedia company will continue to spread to markets throughout the world based on its ongoing commitment to technology, quality and service.

1974. 1 Daewoo Electronics Co., Ltd. founded as an audio products manufacturer

1983. 3 Grew into a general consumer electronics manufacturer

1984. 2 First company in Korea to export VCRs

1985. 2 Completion of Kumi TV plant

1988.10 Completion of microwave oven plant in Longwy, France

1988.11 Completion of VCR plant in Northern Ireland

1990. 7 Completion of general consumer electronics plant in Myanmar

1990.11 Awarded " 1 Billion US$ Export Award " at 27th Trade Day Ceremonies

1990.12 Completion of color TV plant in Mexico

1991. 2 Completion of general consumer electronics plant in Myanmar

1992. 4 Completion of color TV plant in France

1993. 1 Declaration of " TANKism " Establishment of components plant in Vietnam

1993. 5 Establishment of consumer electronics palnt in Uzbekistan

1993. 8 Establishment of TV plant in Poland

1993. 9 First in the world to develop a washing machine that can wash wool suits, silk and coats - the air-bubble washing machine

1994. 6 Development of Diamond like carbon coated head drum VCR

1995. 1 Establishment of washing machine plant in Malaysia

1997. 4 Establishment of integrated consumer electreonics plant in India

1998. 2 Establishment of TV Research Center in U.S.

1998. 2 Establishment refrigerator plant in Spain

The Most Fundamental is Also the Most Universal.

"TANKism" is the moniker which was coined to represent Daewoo Electronics' strong commitment to maximizing customer satisfaction by strengthening the power and convenience of its products. The introduction of the TANKism initiative was aimed at meeting increasing customer preference for appliances and electronic products designed for easy operation, as complicated products with superfluous functions have been losing favor with consumers. At the same time, it focuses on ensuring that products have the power and durability of a "TANK," which can overcome obstacles and withstand disturbances. Under the TANKism initiative, the Company has been committed to developing products which solve many of the traditional problems consumers have had with home appliances, by introducing new and innovative ideas in washing machines, VCRs, refrigerators, vacuum cleaners and so on for the global market. Starting from a basic philosophy which states that The most fundamental is also the most universal, TANKism will continue to be the key strategy for management to maximize consumer satisfaction both at home and abroad.

While Daewoo's global management initiative has expanded the Company's international market, its commitment to technology has ensured stable growth. Under an initiative to make a full launch of next-generation products such as digital TVs, multimedia systems and other strategic items, Daewoo Electronics strengthened its R&D capability by integrating its domestic research centers and placing an emphasis on their cooperating with overseas R&D centers located in the U.S., France and Japan.

To ensure ongoing quality enhancement, the Company boosted the roles played by the Quality & Reliability Laboratory and the Production Engineering R&D Center in Korea. The Company's total R&D investment reached W337 billion in 1998, with an R&D-investment-to-sales ratio of 7.2 percent.

Daewoo Electronics recently became the first in the world to successfully develop TMA technology, a strong testament to the Company's technical prowess. This state-of-the-art technology used in projection devices is based on in-house MEMS (Micro Electro-Mechanical System) technology and is a sophisticated next-generation electronic and mechanical processing technology with a diverse range of display applications, including use in TVs, film-less electronic movie theaters, conference facilities and electronic billboards.

The TMA system is immensely more efficient and brighter than any other large-screen visual system either in use or currently under development. As the next-generation large-screen display market for HDTVs and home theaters is expected to reach at least US$200 billion, the potential value of TMA technology could reach anywhere between US$5 billion to US$20 billion, and account for an estimated 30-percent share of the world's projection display device market.

In addition, with its excellent performance and lower price, TMA technology-featured products are likely to capture 80 to 90 percent of the rapidly growing mobile-projection display device market. Having completed a number of prototypes using TMA technology, Daewoo Electronics now owns 221 registered patents out of the total 1,200 TMA patents filed in 29 nations as at the end of 1998, with commercialization of the Company's TMA technology planned for the latter half of 1999.

PDP is the most promising display system for TV and HDTV screens measuring 40 inches or wider, enabling monitors that are thin, flat and lightweight. PDP systems are totally free from electromagnetic distortions, making them ideal for military, railway, medical and underground applications. The Company developed its first 42-inch prototype in 1997 and the market introduction of PDP products was made in early May 1999. 

Daewoo Electronics developed a 32-inch digital TV in 1998, which features an HD digital TV-receiver, a wide 16:9 screen ratio and a completely flat CRT and XGA-class multi-scan PC monitor. This model features double the resolution and digital reception of conventional TVs, for improved color quality which is 10 times better. U.S. sales of this model will begin during 1999, when a 60-inch digital projection TV model on the market will also be launched.

This digital multimedia system is a real-time system that transmits visual and voice data through phone or cable lines, utilizing MPEG and reproducing standard video displays. Through cable, phone and satellite networks, end-users can have access to movies, games, home-shopping, banking and other multimedia services.

Daewoo Electronics became the first company in the world to succeed in commercializing this futuristic technology. As a key technology in solving the problem of digital equipment malfunction due to the heat generated by high frequencies, LTCC-M has a wide range of applications in a variety of electronic goods, as well as in digital TV circuits, PDP displays, current transformers and transmission modules.

As a new digital multimedia product with a storage capacity of up to 4.7 giga-bytes of data, DVDs can replace conventional VCRs, video disk players and CD-ROMs, providing up to two hours of high-quality display for viewers.

D-VHS is expected to become the standard home data server for digital broadcasts as well as two-way digital communications. Daewoo developed a CODEC (coding/decoding) IC, and is currently working on unifying the CODEC IC with DETECTION IC, which, when completed, will see the Company begin production of Digital VHS VCRs in the first half of 2000.

Daewoo Electronics' cable modems provide secure, multi-megabit connectivity to and from any personal computer or Internet set-top box. In addition to supporting Ethernet interface over cable TV networks, it also offers "always on" Internet connectivity at speeds up to 1,000 times faster than analog telephone modems.

As a cost-effective system used to expand service areas, LHMR minimizes infrastructure expenses and can be used with any wireless telecommunications service, such as GSM, CDMA, TDMA, Paging, WLL, etc.

Wireless modems used in telemetry controllers consist of high-frequency circuits and software. They are the core component of products and systems for which users need control and data access functions while on the move, such as remote controls for home electronics products, utility meter readers and security systems.

Using its own technology, Daewoo Electronics has successfully developed and begun mass production of a low-cost, high-reliability fourth-generation optical pick-up for both general and automobile compact disk players. Optical pick-ups for DVDRs, a next-generation video data recording device developed by Daewoo Electronics, are scheduled to be used in such products from 1999.

TELEVISIÓN

Genuine Realism

. Pure natural colours on screen
Realizing the most clear digital images showing the pictures that exactly the camera has captured, since autonomous adjustment of Color/Clearness/Noise using NCC(Natural Color Correction) Circuit.

The superflat picture tube which allows to provide even and plain beams!

Beams are projected evenly onto screen without deflection so a distinct picture without any distortion and with alive three-dimensional feeling is secured as well as eyesight protected against rays emitted from screen even in long time watching.

Neo Radial Sound by Aura with MAX.60W sound output.

Two NRS Speakers in each resonance chamber maintain even sound quality from the lowest level to the highest and generates grand & magnificent sounds without Super-Woofer or Tweeter

VCR

Maximum Tidiness

Diamond Like Carbon Coated Drum has several merits in terms of the picture quality and the life-span of head drum.

The characteristic of DLC coating prevents the adhesion of tape to reduce the damage caused by friction against the video tape. Hence, it always provides the best picture quality with the least dirts even under high humidity condition (70% humidity). The DLC coated Drum eventually protects the quality of video tape and prolongs the life-time of head drum. The advanced DLC coated Drum technology guarantees distinguished enhancement in quality of VCR deck mechanism, and it enables the remarkable cutdown of A/S cost in relation to the picture quality problem.

Least Drum Damage

Dirts Minimization on the Drum and the Video Head

Best Picture Quality (even under High Humidity)

Distinguished Enhancement of the Quality Reliability of VCR Deck Mechanism
MWO

High technology at nearly everyone's reach

C.R.S combines Concave Reflector, which concentrates the waves equally on all areas of the food item, with the Dual Wave System which distributes waves evenly into the cavity from 2points, one above the item and one below.

C.R.S emits microwaves onto a concave reflector which concentrates the microwave on the food, resulting in even cooking.

C.R.S minimizes discrepancy in the temperature of each cooking area by emitting microwaves on the entire tray.

C.R.S achieves quick cooking by emitting microwaves to all sides of the food.

REFRIGERATOR

The pleasure of winter with Daewoo

With the development of the Surround Multi Air Flow System, No Frost System, etc. Daewoo refrigerators are fully equipped to keep your products freshly stored for a long time.

Daewoo refrigerators are not just home appliances, they have been developed with a soft & round concept providing a variety of door designs such as embossed doors. PCM dors and shiny high glossy doors. They are available in various colors as well to adapt to environment around it.

Daewoo refrigerators have been constructed with the idea of saving energy. A temperature setting control panel has also been added to assure the users more convenience and control over how much energy is used.

Daewoo refrigerators are installed with a cleaning system that extract odor and bacteria. They also have spill prof crystal trays to prevent small mishaps.

Daewoo refrigerators include adjustable trays, separate vegetable trays and door pockets as well as an energy saving function to make your life more convenient.

Most other refrigerators cool products from the back making those products left in the rear to freeze. Daewoo has used the Surround Multi Air Flow System with 12 cooling holes to circulate the cool air throughout the refrigerator and keep our foods fresh.

Instead of using one fan for both the freezer and refrigerator, we installed two fans which separately control each compartment.

WASHING MACHINE

Air bubbles improve washing performance by scrubbing cloth like hand-washing. New Air bubble mechanism produces twice the number of air bubbles than previous models, and improves cleaning effect as many.

2 Strong exclusive water falls and 1 water fall through the lint filter that pour down form the huge size waterspouts located on high position of the tub remove heavy stains on the laundry effectively by strong hitting power.

Water level sensor automatically adjusts proper water level according to the load of laundry by 22 steps with 7 levels indicated. Accordingly, it saves not only energy and detergent but also washing time.

The ergonomic out-looking style is user-friendly and makes users feel comfortable. In addition, it makes the washer go well with any places.

For the first time in the world, the washer has the water guide filter behind the washing tub, which comes true clean tub and protects the laundry from any possible damage caused by water guide filter installed inside of washing tub.

VACUM CLEANER

While operating a vacuum cleaner, every one feels that power control on hose handle is much more convenient than the power control on body. Daewoo came true this handle remote control system with the accumulation of high technology.

Daewoo gives you a pleasant life by using the HEPA filter which captures minute particles and kills harmful bacteria on contact. plus a HEPA filter to help allergy sufferers and asthmatics for 99.9% filtration!

MONITORS

DWE Monitors have outstanding screen image for the users who want advanced performance features, it has user friendly features and easy adjustment to optimum working environment.

Fully supports the Windows 98 and Windows NT auto-installation standard for easy, trouble-free configuration and setup

DWE monitors fully support Plug & Play through enhanced DDC 1/2B/CI

Daewoo Monitors are EPA Energy Star-compliant, satisfying both the VESA DPMS specification and Nutek requirements for low power consumption, thus reducing your monitor energy cost by as much as 95% or more during idle time

DWE monitors new OSD system provide fully focused images for easy and convenient adjustment. Users can develop the best-fitted working environment with their PC.

OTHERS PRODUCTS

We have measured precisely the feeling of the fresh, soft wind, which blows from mountains or valleys to create rhythm with the natural wind by utilising AI(artificial Intelligence) Controls, which contrasted with the previous uniform air values and air speeds.

Anti-Bacteria Filter

The Anti-bacteria filter removes dust which ar hamful for health such as bacteria and mold.

Electrostatic Filter

This filter removes dust & minute particles as tiny as 0.01 micron by electric dust collection method.

Decodorizing Filter

The unique deodorizing filter removes unpleasant odors from the air.

The flap swings automatically in 4-way direction(up/down & left/right), distributing air throughout the room.

After room temperature is monitored by the sensor in the Auto mode, Temperature, Mode(Cooling-Soft Dry-Heating), Fan Speed are automatically set to the most suitable and ideal operation mode which provides you with maximum comfort alway.

If you switch to the Sleep Mode before going to bed, a gentle cooling or heating creates an environment for restful sleep. An adequate change in room sensor. The temperature level rises by 0.5! every 30 minutes and turns off automatically after 4 hours of operation.

DAEWOO IN AMERICA

Since establishing a sales subsidiary in New Jersey in 1983, the Company has set up a total of three production subsidiaries in Mexico and Brazil, nine sales subsidiaries in the United States, Canada and a number of South American countries, and three R&D centers in the United States. The Company has enhanced integration of R&D, production and sales of color televisions and video cassette recorders by developing efficient communication channels between sales subsidiaries and R&D centers in the U.S., and the color television and video cassette recorder plants in Mexico. In addition, the R&D center in Arizona is currently focusing on the development of next-generation television models in cooperation with other advanced electronics R&D institutes in the U.S. In 1998, the Company's regional sales reached W1,626 billion, accounting for 39.7 percent of total overseas sales. Largely boosted by an increase in turnover in the U.S., the region's sales have continued to grow steadily as a portion of total overseas sales over the past four years. The Company will capitalize on its success so far to further enhance brand sales in the Americas in 1999



DAEWOO ELECTRONICS CORPORATION DE MEXICO S.A DE C.V

Daewoo Electronics, began its operations in the Mexican Republic in 1991, where it initially installed its DELMEX (Daewoo Electronics de Mexico) headquarters in the city of San Luis Río Colorado, Sonora, which with an area of 330,000 square meters and an investment of US$133 mn, had the capacity to produce televisions, video recorders, computer monitors and electronic components, this was Daewoo Electronics' first step to consolidate its operations in our country.

Over a period of time, the domestic market became familiar with Daewoo's products. Due to this acceptation, and with the aim of reaffirming its compromise as a company orientated to the consumer, Daewoo Electronics established its first commercial offices in Tlalnepantla, in the State of Mexico, but later, as a result of the growth and consumer acceptation of our products, Daewoo wholly transferred its installations to Naucalpan, in the State of Mexico, and through this strategy the company sought to supply the demand, and thus present the consumers with the products to which they had so quickly shown a preference.

In 1995, DEHAMEX (Daewoo Electronics Home Appliances de Mexico) was formed with the construction of a new plant (covering an area of 52,800 square meters) in Queretaro, with an investment of US$38 mn, which was capable of producing home appliances such as refrigerators and washing machines. With the creation of this plant, the company aimed to respond efficiently to the growing demand for these products, which increased gradually due to the quality and added value supplied by the company's product line.

As a result of client preference for Daewoo products throughout the length and breadth of the Mexican Republic, the company established retail outlets in the cities of Monterrey, Guadalajara and Mexicali in order to attend the regional demand within the domestic market, whilst at the same time, the company established a team of Sales Representatives in the other states of the Republic.

Since its arrival in Mexico, Daewoo Electronics has made painstaking efforts in the fields of investigation and the development of new products, with the aim of satisfying client demand. One example of this is the introduction of new refrigerators with both an attractive design and an advanced cooling system such as the "Multi Air Flow" line, which due to its numerous cooling holes, enables the prolonged conservation of food, thus offering incredible benefits to housewives.

The introduction of the exclusive System of Air-bubbles, which was patented by Daewoo for its washing machines, came to signify a new era in the washing of clothes by offering ease of operation at the same time as developing a more clothing-friendly and efficient washing process. Additionally, the Daewoo washing machines incorporate digital control panels that incorporate new washing programs, whereby the housewife can perform the washing by pushing just one button!

Due to the constant cycle of improvement in the quality of our products and the company's objective of offering solutions to the growing demands of our clients, Daewoo Electronics designs attractive product models, which include advanced technology at a reasonable price, such as PDP Televisions, Plasma Televisions and Microwave Ovens with a C.R.S (Concave Reflection System), among other interesting projects soon to be launched onto the market.

Daewoo Electronics Corporation de Mexico, has not only committed itself to the conception of new product lines that have modified the rhythm of the market but has, in addition, developed a system of constantly seeking out new alternatives aimed at making the User-Technology process more humanistic, through the design of interactive, easy-to-use equipment, and above all (a good example of which is) the recent market launch of the Radical Air-Bubble Washing-machine, which through the use of widely acknowledged technology has the capacity to exterminate germs and bacteria and thus offer the whole family the maximum possible hygienic protection.

Daewoo Electronics future prospects are promising, as with the strengthening of the existing infrastructure the company aims to consolidate the growth it has experienced throughout its lifetime, while its futuristic vision is concentrated in the creation of products that day after day seek to incorporate new innovations, and most important of all, that these products become a fundamental part of our clients' lives.

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© World INvestment NEws, 2000.
This is the electronic edition of the special country report on Mexico published in Far Eastern Economic Review (Dow Jones Group). December 21st, 2000 Issue.
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