South Korea’s auto parts manufacturer Sam Jin Industry Co. will build a production facility within the industrial section in the reclaimed land along the lengthy seawall Saemangeum in North Jeolla Province, becoming the zone’s first long-term local tenant.
The Saemangeum Development and Investment Agency said on Monday that it has approved a 50-year lease of a 26,500-square-meter plot in the Saemangeum industrial complex to Sam Jin Industry. The agency has secured sites for long-term lease to rent them out to companies from home and abroad interested in investing in the reclaimed land area. Special law took effect under the new government last year to promote Saemangeum project or redevelopment project in the reclaimed land to revive interest in the industrial zone and boost investment.
Saemangeum is the world’s longest manmade estuarine flat on the coast of the Yellow Sea. The area had been exclusively reserved for foreign and selective local businesses, but the government last year revised an administrative act to widen accessibility to both foreign and local businesses.
An unnamed official from the Saemangeum Development and Investment Agency said that Sam Jin Industry’s investment in the industrial complex will invite more auto related companies to set up facilities in the reclaimed land area and grant more approvals for long-term leases.
Following the local government’s approval, Sam Jin Industry will invest 39 billion won ($36.6 million) in the first zone in the industrial complex within Saemangeum in February to build an assembly and manufacturing facility for 2.5-ton or smaller commercial trucks. Sam Jin Industry signed a memorandum of understanding in October to build a manufacturing factory for commercial trucks in Saemangeum.
Founded in 1979, Sam Jin Industry makes panel and door parts for commercial vehicles, trucks, and buses, at its manufacturing plant in Jeonju, North Jeolla Province. Currently, the company supplies components to Korea’s largest automaker Hyundai Motor Co., its sister company Kia Motors Corp. and Tata Daewoo Commercial Vehicle Co.
By Park Jin-joo and Lee Eun-joo
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]