Robotic Process Optimization Boosts Both Quality and Productivity

Root technology companies, long associated with “3D industries” (difficult, dirty, dangerous), have traditionally been perceived as part of an outdated manufacturing sector, far removed from cutting-edge IT. However, with the onset of the Fourth Industrial Revolution worldwide, such companies are realizing that without the integration of smart factories and IT technologies, maintaining global competitiveness is increasingly difficult. In Korea as well, more root enterprises are rapidly adopting smart manufacturing.

Sewon Metal Co., Ltd., selected as a Global Small Giant by Gyeongnam Techno Park, is a hot forging specialist for automotive components and a frontrunner among root companies implementing smart factory technologies.

Established in 1995, Sewon Metal relocated its plant to Juchon-myeon, Gimhae in 2002. In 2005, it founded its own research center and obtained a global patent in 2008 for a mold device used in manufacturing piston skirts. This innovation triggered rapid growth.

The company manufactures forged engine parts for commercial vehicles (e.g., trucks and buses) and transport machinery, including steel pistons, connecting rods, gears, spindle plates, end rods, yokes, and tie rods. The core of this production is hot forging technology.

Sewon Metal is an export-driven company, with over 60% of its sales coming from overseas markets. The remaining 30–40% is supplied to Hyundai, Kia, and other domestic clients. Sales are equally divided between commercial vehicle and transport machinery parts. From 2008 to 2015, the company recorded double-digit annual growth, thanks to its patented piston skirt mold technology, with sales reaching KRW 46 billion in 2014 and KRW 53 billion in 2015.

However, in the most recent year, its provisional sales dropped sharply to KRW 41.1 billion due to a global slump in the transport machinery market and setbacks in China faced by Korean manufacturers.

In response to these challenges and to prepare for future growth, Sewon Metal applied for the Global Small Giant program in 2015. In the first year, it invested KRW 20 million in marketing development, and in the second year, focused on process improvement.

Despite significant investment in robotic equipment, the company struggled to achieve the desired levels of quality and efficiency. This led to the launch of a KRW 14.5 million project in September to optimize the robotic system process. With external consulting, they analyzed the current production line, identified issues, and set directions for productivity and quality improvement.

The company enhanced mold holders and JIGs (gripper parts of robotic arms) to optimize robotic operations. Standardization was also achieved by creating equipment checklists and work instructions. Initial targets were a 20% productivity boost and a 10% quality improvement over manual lines. The actual results exceeded expectations: productivity improved by 110% and quality by 96.8%.

Building on this success, Sewon Metal plans to enhance price competitiveness through further process improvement and defend its market position against rising competition from Chinese and Vietnamese manufacturers.

The company is preparing to relocate its plant to Jinrye Techno Valley in Jinrye-myeon, Gimhae in April. By the end of the year, it aims to increase automation from the current 10% to 40%.

CEO Lee Jung-hee stated, “We achieved remarkable success through the second year of the Global Small Giant program. It was a valuable opportunity to realize the necessity of smart factories. It’s no longer a matter of choice but of survival. Our goal is to reach 40% automation by year-end and 70% within a few years.”

With enhanced competitiveness through smart manufacturing, Sewon Metal is also developing new growth engines.

The company plans to commercialize engine pistons for passenger vehicles, using a mold patented in 2013 for 1-ton vehicle pistons. Additionally, it is expanding R&D efforts into non-ferrous forging, moving beyond its traditional steel forging capabilities. Sewon Metal invests 3.5–3.8% of its annual revenue into R&D for quality improvement and future growth.

CEO Lee added, “Alongside smart manufacturing and new product development, we’re closely monitoring how major automakers respond to future vehicles like EVs. The automotive industry is in a transition phase driven by eco-friendly initiatives. Understanding the direction of OEMs and reacting quickly is crucial—survival is a matter of speed.”