Korean-Japanese Automotive JV to enter DGFEZ
On September 10, 2013, Hwajin (Korea) and DIC Corp (Japan) signed a memorandum of understanding (MOU) to form a joint venture in the DGFEZ Yeongcheon Industry District. The MOU is the result of efforts by Hwajin and DGFEZ to find a partner that would increase its international presences and international market share.
The joint venture calls for USD 30 million of investment and includes construction of a new factory which will manufacture automotive components such as wood grain and coated interior parts. The new factory (59,504 square meters) is set for groundbreaking in December 2013 and will begin production from May, 2014.
Attending the MOU signing ceremony was: Gyeongbuk Governor Kim Kwan-yong, Yeongcheon Mayor Kim Yeong-seok, DGFEZ Commissioner Choi Byung-Rok, DIC Korea President Nakahashi Shingo, President of Hwajin Corp. Jo Man-ho as well as other dignitaries.
DIC Corp. is a global automotive company located in Itabashi, Tokyo DIC Corp. In 2012 DIC had revenue of USD 7.495 billion with approximately 20,000 employees. Its main products include organic pigments (printing ink), synthetic resin, and chemical solutions. With a specialized ink printing process and possessing its own IP, DIC Corp. has the highest global market share in the field of industrial printing ink.
Hwajin Corp. located at Yeongcheon, Gyeongbuk Province was founded in 1992. The medium-sized company has approximately 280 employees, and recorded revenue of USD 92 million. Hwajin’s main products include ‘automotive wood grain and coated interior parts’. Among its clients are Hyundai Motor, Nissan, Honda and LG Electronics.
The joint-venture in Yeongcheon Industry District is expected to strengthen the regional economy especially in automotive interior components, and the advancement of technical cooperation and productivity, while creating 280 new jobs.
With the recent investment by DIC Corp and Hwajin, DGFEZ is advancing as a global industrial location for leading Japanese automotive components companies. Among the current Japanese companies in DGFEZ are Nakamura Tome, Pyeonghwa NOK Drive Train (PNDT), and Daicel Safety Systems Korea (DSSK).
Source : DGFEZ Investment Strategy Team
