The Busan city signed a MOU on Investment attraction with "KAYU”, an automobile parts manufacturer, and "S&SYS," a company of Ballast water management system for ships, at the city hall meeting room on the afternoon of the 27th.
The signing ceremony was held with Kim Yoon-il, head of the Busan city's job economy office, Baek Nam-yeol, vice president of KAYU, Bae Jae-hyuck, CEO of S&SYS , and executives and employees of the company.
The MOU states that ▲ investment companies will actively contribute to regional economic development and job creation through investment in Busan. ▲ In particular, it strives to recruit talented local employees and participates local companies as partners to lead the growth of related industries together. ▲ Busan City promises administrative and financial support for smooth investment.
Automobile parts manufacturer KAYU established a corporation in February 2004, and its headquarters and plant are located in Masan export free district, Changwon City, with sales of 31.5 billion Korean won and operating profit of 2 billion Korean won, showing solid growth despite the recession in the automobile industry. In 2015, the second plant was completed at the Miseum Industrial Complex in Gangseo-gu, Busan, and it contributed to sales growth by mass-producing 8-speed automatic transmission parts, and 40 out of 110 employees are working at the Busan plant.
Under the agreement, the company plans to invest a total of 27.7 billion Korean won by building a plant with a site of 13,226㎡ and a total floor area of 11,900㎡ in the Gangseo-gu International Industrial Logistics City, and is expected to hire 50 to 60 new workers. The selection of an investment location is a combination of the need to build a third plant in an industrial complex adjacent to Busan's second plant and the active investment attraction activities of Busan City.
S&SYS Co., Ltd. is a company that spun off from Samsung Heavy Industries' electronic and mechanical system team in September 2017, and produces shipbuilding equipments such as ballast water management system and automation system. Its headquarters and research personnel are located in Hwaseong, Gyeonggi, and its manufacturing plant is located in Haman, Gyeongnam. The number of employees is 129 with a capital of 4 billion won. The company's main product, the ballast water management system, is designated as a national core technology, and it sterilizes marine microorganisms when ship ballast water enters and leaves in order to prevent ecosystem disruptions between seas. It also supplies automation systems and switchboards suitable for various ships and marine facilities, including high-value vessels such as liquefied natural gas (LNG) carriers.
Under the agreement, the company plans to invest a total of 19.3 billion won with a land area of 17,900 square meters and a total building area of 10,230 square meters in international industrial logistics cities. When the investment is completed, a total of 90 jobs are expected to be created with relocation and new employment.
The investment was decided to streamline management and reduce logistics costs due to the increase in export volume by integrating research, development and design teams and production centers in Busan, adjacent to the main trading company of domestic shipyards. By attracting this company, the city has attracted all the first to fifth largest companies in Korea to Busan.
Busan Mayor Oh Geo-don said, "We expect that the MOU will be a priming water for attracting bigger companies and revitalizing the local economy. We will create a cluster of core parts for future automobiles to attract related companies and respond quickly to changes in the future automobile industry such as electric vehicles."