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 AUBURN HILLS, Mich., Jan. 3 /PRNewswire/ -- ITT Corporation (NYSE: ITT), Kia Motors Corporation and Kia Precision Works (KPW) have formed a joint venture in Korea to manufacture and supply ITT Automotive Teves anti-lock brake systems, traction-control and brake components to the Korean automotive market, according to Timothy D. Leuliette, senior vice president, ITT Corporation, and president and chief executive officer, ITT Automotive.
 ITT will hold a 40-percent interest in the newly formed company that will be called Korea Advanced Brake System Company, Ltd. The remaining 60-percent interest will be evenly split between Kia Motors and KPW.
 The formation of the Korea Advanced Brake System Company marks ITT Automotive's entry into the Korean auto market as a manufacturer. ITT Automotive currently supplies Pacific Rim vehicle manufacturers with brake components, ABS and traction-control either directly or through technology agreements and joint ventures.
 "We are fortunate to have Kia Motors and Kia Precision Works as partners in this joint venture," said Leuliette. "Their prominence in the Korean automotive industry and considerable knowledge of the Korean market will greatly enhance ITT Automotive's ability to serve customers in the region, while increasing our presence as a brake systems manufacturer in this rapidly growing market."
 In addition to ITT Automotive Teves ABS and traction-control systems, the Korea Advanced Brake System Company will produce front brake calipers, and brake force proportioning valves. ITT Automotive already supplies these products to Kia Motors, one of the largest vehicle manufacturers in Korea.
 "The sharing of leading-edge brake technology between Kia Precision Works and ITT Automotive will benefit both companies as well as Kia Motors, as we seek to expand our market share in this region," said Kim Sun-Hong, chairman, Kia Motors Corporation, and Ma Kyu-Ha, president, Kia Precision Works.
 The joint venture is expected to produce approximately 90,000 anti- lock brake and traction-control systems, 500,000 front brake calipers and 500,000 proportioning brake valves annually by 1998. Initially the company will employ approximately 60 people from the region, and two ITT Automotive expatriate engineers who will work full time at the operation. The company expects to employ nearly 100 people before the end of the decade.
 ITT Automotive is the world's largest supplier of four-wheel passenger vehicle ABS systems. Earlier this year, the company opened its second North American ABS facility in Morganton, N.C., and increased capacity at its Frankfurt, Germany, and Mechelen, Belgium, plants to meet current contract requirements.
 ITT Automotive, headquartered in Auburn Hills, is a $3.5 billion global automotive supplier to the automotive industry that comprises eight product groups. They are: Brake Systems, including ITT Automotive Teves anti-lock brakes, traction-control and total brake systems; Electrical Systems, including ITT Automotive SWF wipers, arms, blades and wiper systems; Fluid Handling Systems; Precision Die Castings; Structural Components; Switches and Lamps; Electric Motors; and Aftermarket Products, including Koni shock absorbers and Aimco brake components.
 ITT Corporation, with 1992 sales of $21.7 billion, is a multinational enterprise engaged in four major business areas: ITT Business and Financial Services, ITT Manufacturing, ITT Rayonier and ITT Sheraton. The company had 1992 sales of $21.7 billion and employs some 106,000 in 63 countries around the world.
 -0- 1/3/94
 /CONTACT: Val Brown of ITT Automotive, 313-340-3680/

CO: ITT Corporation; Kia Motors Corporation; Kia Precision Works ST: Michigan IN: AUT SU: JVN

KR-ML -- DE020 -- 8606 01/03/94 16:02 EST
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Publication:PR Newswire
Date:Jan 3, 1994

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