[Edaily Marketin Kwon so hyun Reporter] Mobility company KR MOTORS(000040)is moving to improve its financial structure through the sale of its Changwon plant. The company plans to repay existing debt and accelerate its business restructuring by leveraging synergies from the relocation of its production base and the merger with Dynamac.

KR MOTORS announced on the 19th that it had signed a definitive agreement to sell all land and buildings at its Changwon plant in South Gyeongsang Province to Kanglim Heavy Industries for approximately 47.5 billion won. The sale agreement includes a provision stipulating that the buyer will assume all post-sale environmental liabilities.

KR MOTORS plans to use the proceeds from the sale to repay and settle major debts, including approximately 22.1 billion won in principal and interest on convertible bonds (CBs) secured by the Changwon site, as well as loans from financial institutions. The company aims to reduce financial costs and alleviate its debt burden through this measure. It also expects to resolve the burden of the CB overhang, which has been cited as a potential factor for stock dilution.

The company plans to manage the remaining debt stably while maintaining low-interest rates through consultations with its lending syndicate.

Following the sale of the Changwon plant, the motorcycle production facilities will be relocated to a newly leased facility. KR MOTORS plans to secure a new facility measuring approximately 1,000 to 1,500 pyeong to relocate its assembly, inspection, certification, and parts logistics functions, and will continue motorcycle production and after-sales service (AS). The company intends to reduce the burden of fixed costs—such as depreciation expenses associated with plant ownership—while maintaining supply to its existing dealer network and customer service.

The sale and relocation of the factory are part of a business restructuring initiative following efforts to streamline the production workforce. The company has focused on improving profitability by reducing the cost burden associated with real estate ownership and optimizing its manufacturing system.

The financial results of Dynamac, a precision automotive parts company that completed its merger on the 30th of last month, are also expected to be fully reflected starting in the fourth quarter. Dynamac, a company with annual sales of approximately 80 billion won, will play a role in diversifying KR MOTORS’ business portfolio and revenue structure through the merger.

Building on Dynamac’s precision machining technology for caliper pistons—its core product—KR MOTORS plans to expand its business scope beyond its existing automotive parts operations into high-value-added mobility sectors such as robotics, aviation, and high-speed rail. The company is also exploring additional merger and acquisition (M&A) opportunities with related technology firms.

A KR MOTORS official stated, “Reducing debt through the sale of the Changwon plant, relocating to a more efficient leased facility, and merging with Dynamac are strategic decisions aimed at sustainable growth,” adding, “We will enhance shareholder value by maintaining stable operations in the motorcycle business while advancing the modernization of our parts business.”