(HONGSEONG=Yonhap News) The German auto parts supplier Edscha has agreed to spend USD 5 million on building a manufacturing facility in Cheonan City, South Chungcheong Province.
The Province revealed it had met with Edscha at the Grand Hyatt Seoul on Feb. 16, and signed a memorandum of understanding.
Edscha will invest USD 5 million until 2022 to build a factory that produces auto parts, such as trunk latches, on a 6,227m² site designated for foreign investment in the Cheonan 5th Industrial Complex.
South Chungcheong and Cheonan have agreed to support Edscha with various infrastructure and administrative services to make sure the construction and operation of the new factory goes smoothly.
When the factory begins to operate in full swing, the Province expects it to generate, for the next 5 years, KRW 170 billion in sales, 50 new jobs through direct employment, KRW 1.2 trillion in induced production, and KRW 850 billion in induced added value.
Edscha is a multinational company with 18 factories in 14 countries around the world, including Russia, Japan and China. Last year it had reported record sales of KRW 950 billion, as well as a record number of 5,200 employees.
According to Kim Yeong-beom of the Province's Economy and Industry Division, "Edscha will be of great help in reviving the local economy, not only by raising its industrial competitiveness, but also by creating jobs."
Edscha CEO Torsten Greiner said, "Edscha will do its best to carry out the agreements made in the MOU, such as by giving priority to hiring local workers."
jkhan@yna.co.kr
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Source: Yonhap News (Feb. 16, 2017)