Invest KOREA

According to Yonhap News,

(SUWON=Yonhap News) I.T.O, a leading valve manufacturer in Japan, plans to invest KRW 30 billion in the Poseung Industrial Complex in Pyeongtaek, Gyeonggi Province.

Gyeonggi Province signed a memorandum of understanding (MOU) with I.T.O for a joint venture on August 8 in the Poseung Industrial Complex. Participants included Gyeonggi Province Governor Nam Kyung-pil, Pyeongtaek Mayor Gong Jae-gwang, I.T.O President Niro Utsumi and KPP CEO Kang Young-seok.

I.T.O and KPP Co., Ltd. will establish KPP & I.T.O Co., Ltd. and invest USD 29 million (about KRW 30 billion) to manufacture LPG storage tanks and create 150 new jobs.

Gyeonggi Province will provide 33,000 ㎡ of land close to the KPP head office, which has produced gas valves and vaporizers in Poseung Industrial Complex since 2009.

The MOU aims for KPP Co., Ltd. and I.T.O to dominate the LPG small storage tank market in Japan and Southeast Asia.

According to the province, the Ministry of Trade, Industry & Energy (MOTIE) is trying to replace LPG household gas bottles with LPG small storage tanks following the adoption of the gas expansion policy. The LPG small storage tanks are expected to be widely used in high density rural residential zones.

The demand for LPG small storage tanks in Japan is growing and the export outlook is positive as LPG small storage tanks are recognized as the tools with which to supply energy to high density rural residential zones in Indonesia and other Southeast Asian countries.

"The MOU will establish a foothold for LPG storage tanks to enter overseas markets and we hope the MOU will encourage coexistence between domestic industries and foreign-invested companies,” said Director Gang Hyun-do of MOTIE’s Investment Promotion Division.

hedgehog@yna.co.kr

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