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According to Yonhap News,
(MUAN=Yonhap News) Three Korean car parts companies each signed an investment agreement with four European car tuning companies to establish joint ventures in the Sampo area of Yeongam, South Jeolla Province. The companies will invest a total of KRW 36 billion (USD 32.51 million) in the joint ventures.
Kyunghan Korea will establish a joint venture with Gemballa of Germany and JRZ of the Netherlands to invest KRW 18.4 billion in a production plant for wheels, suspensions and shock absorbers.
Sambo Motors and Germany’s SKN will co-invest KRW 12.4 billion in a joint venture that produces engines, brakes and exhaust systems.
Athena and Germany’s M-Sys will build a joint venture to develop car management-related software with investment of KRW 5.2 billion.
South Jeolla Province expects the agreements to lay the foundation for local car parts companies to adopt advanced technology, so they can preoccupy the high value-added car parts market.
The province has invested KRW 117 billion to develop high-performance car parts and nurture tuning companies by capitalizing on the Formula One circuit. It also supports the establishment of a car tuning valley in Sampo through research and development.
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Source: Yonhap News (May 12, 2015)
** This article was translated from the Korean.