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BJFEZ News

[Investment MOU] with Dongnam Co. for Smart R&D Facility

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2022-11-04 09:26:42
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BJFEZ

BJFEZ welcomes the first U-turn company, Dongnam Co.

BJFEZ welcomes the first U-turn company, Dongnam Co.

BJFEZ x Dongnam Co.

BJFEZ welcomes the first U-turn company, Dongnam Co.


 The first U-turn company to move into BJFEZ’s 『Foreign Investment Zone』

◆  Expected to establish an R&D outpost of eco-friendly electric automotive parts of a medium-sized company


Busan-Jinhae Free Economic Zone (BJFEZ, commissioner Kim Ki-young) Authority announced that it had signed an MOU with an advanced parts & materials company, Dongnam Co. (President Kang Young-Cheol), for establishing an R&D convergence Smart Factory at the conference room on the 5th floor of BJFEZ Authority’s office on October 28. The MOU signing ceremony was participated by related persons including Kim Ki-young (Commissioner of BJFEZ Authority), Kwon Chang-ho (Head of the investment promotion group of Gyeongnam Province), Jeong Hyun-Seop (Director General of the economy and employment department), and Kang Young-Cheol (CEO of Dongnam Co,).

Investing approximately 2.1 million USD, Dongnam Co. plans to begin construction of the Smart R&D facility including manufacturing prototypes utilizing 3D printing technology in BJFEZ’s Nammoon Foreign Investment Zone and complete construction by next year.

Established in 1965, Dongnam Co. is a representative medium-sized automotive parts materials company of the region with total sales of approximately 436 million USD (as of 2021). It has invested about 71.4 million USD in Beijing, China as the primary affiliate of Hyundai Motor Company. This company is one of the core subsidiaries of Dongnam Precision and has been developing and producing advanced automotive parts materials. It was selected as a company to foster eco-friendly future cars and to specialize in the parts materials equipment by the Ministry of Trade, Industry and Energy. Also, it has been providing electric automotive parts to Tesla by actively procuring measures reacting to the electrification of the cars.

BJFEZ Authority is the first case in Korea for a Korean U-turn company to move into the Foreign Investment Zone. The authority has promoted attracting U-turn companies with state-of-the-art technology in the parts & materials field, attracting domestic investment from Dongnam Co.

A person from Dongnam Co. said, “We are very glad that we could move into BJFEZ, which is much more beneficial for the company to be able to get various supports from the BJFEZ and the local government. We plan to contribute to creating new employment and revitalizing the local economy by establishing an advanced eco-friendly smart R&D Facility. We will try to create an R&D outpost to develop further in developing eco-friendly automotive parts materials technologies.”

A person from BJFEZ Authority said, “Dongnam Co. is the first case to move into the Foreign Investment Zone as it became possible for U-turn companies to move into the Foreign Investment Zone while the return of the U-turn companies have been encouraged by the government. I expect that BJFEZ can become an attractive investment destination for the companies considering returning to Korea.”

Through this MOU, Gyeongnam Province and Changwon City will provide administrative and financial support to promote the businesses and BJFEZ Authority will provide administrative support. Also, Dongnam Co. will actively contribute to the development of the local economy and employment creation by diligently carrying out investment plans, and hiring local human resources.

BJFEZ Authority announced that it would expect this investment to ▲ reinforce the competitiveness in eco-friendly automotive parts & materials technology, ▲ create employment by hiring new human resources  expand the production base of future eco-friendly automotive parts.

 

“Attracting Dongnam’s investment was the first case that a U-turn company investing in BJFEZ. The authority will actively cooperate and support Dongnam to build and manage its facility. In the era of the 4th Industrial Revolution, we will try to consistently create an investment environment suitable to do business by reducing restrictions and expanding supports.

Kim, Ki-Young, Commissioner of BJFEZ