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IT Engineering Co., a South Korean mobility engineering service provider, has unveiled an ambitious plan to build 20,000 units of electric vehicles per year, throwing down the gauntlet against giant auto makers in the local electric vehicle market.
The company said Tuesday it signed an agreement with North Jeolla Province to set up an EV plant at a 177,221 square-meter site in Jipyeongsun Industrial Complex, Gimje, about 200 kilometers southwest of Seoul. It will break ground for its first plant in April with an initial investment of 80 billion won ($74.5 million) and aims to complete the construction by October 2019. The company plans to produce 10,000 units a year from the plant by 2020 and gradually ramp up capacity to 20,000 units a year.
“We plan to make commercial EVs that can run over 80 kilometers per hour and make them our new growth engines,” a company official said.
Funded by Korea’s largest steelmaker Posco, IT Engineering specializes in engineering design for both conventional automotives and EVs. Late last year, it was acquired by GNCO Co., the parent company of private equity and venture capital firm Q Capital Partners Co. GNCO is the owner of the local fashion label Thursday Island and Curomotors Co., the Korean vendor of the Japanese automaker Isuzu Motors.
IT Engineering said that once its EV plant goes into mass production in 2020, it will start marketing its vehicles through Curomotors’ sales network.
The company’s EV manufacturing site is close the Jeonbuk Institute of Automotive Convergence Technology and other relevant organizations, the company explained.
By Jin Young-tae and Kim Hyo-jin
Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.
Source: Pulse by Maeil Business News Korea (Feb. 21, 2018)