Fescaro, a company specialising in vehicle integrated security platforms, said on Thursday it will become the largest shareholder of auto parts maker JS Automotive by acquiring 70 percent of its newly issued shares.

Through the acquisition, Fescaro will secure manufacturing capability in addition to its existing vehicle cybersecurity and electronic control unit businesses. JS Automotive will strengthen its research and development capability while securing financial soundness.

JS Automotive, founded in 2006, is an auto parts manufacturer whose main products include electronic module parts, wiring harnesses and connectors. It posted consolidated revenue of about 40 billion won last year.

The two companies plan to pursue investment across various areas, including building an integrated purchasing system, stabilising inventory operations, upgrading production technology and production management, and improving quality. They also agreed to gradually expand their business areas going forward.

Fescaro stressed that following its acquisition of electronic control unit developer MOTLAB in December last year, the purchase of JS Automotive has secured a base for controller production as well.

It said it has built a vertically integrated SDV supply system spanning cybersecurity, electronic software and production, and aims to strengthen its competitiveness in responding to global automakers and controller developers.

Fescaro Chief Executive Seok-min Hong (홍석민) said, "This acquisition is an important turning point that goes beyond simply securing a production base and expands Fescaro's business into the core SDV controller market." He added, "Based on competitiveness in which cybersecurity, electronic software and mass-production capabilities are organically connected, we will expand continued investment and cooperation and accelerate our push into global markets."