Chungcheongnam-do, or South Chungcheong Province, has succeeded in attracting a US$5 million (5.88 billion won) investment in Cheonan City from a Japan-based manufacturer of metal surface treatment chemicals and equipment.
Governor of Chungcheongnam-do Ahn Hee-jung, who has started visiting Malaysia and China in order to attract foreign investment, signed a memorandum of understanding (MOU) with Nihon Parkerizing CEO Hideya and Cheonan City Deputy Mayor Seo Cheol-mo at Incheon's VIP airport lounge before leaving the country on Aug. 11.
Under the agreement, Parkerizing will invest US$5 million (5.88 billion won) to build a plant in Cheonan Industrial Complex No. 5 by 2019. The plant will be set up on a 15,000 square meter site in the foreign investment zone in the complex to produce metal rust preventive oil and cleaning agents.
Parkerizing holds unrivaled technological prowess in the metal surface treatment chemicals sector, making rust preventive oil and cleaning agents. Currently, the company has 53 subsidiaries in 12 countries around the world, and supplies its products to POSCO, Samsung, LG, and Kia Motors in Korea.
Once the investment from Parkerizing is completed, the province expects to directly employ 70 workers, induce 200 billion won (US$170 million) worth of production and 300 billion won (US$255 million) worth of added value, cause 50 billion won (US$42.5 million) worth of exports, and bring 175 billion won (US$148.75 million) worth of import-substituting effects in the next five years.
The MOU with Parkerizing followed after the investments from Japan’s NSK, a manufacturer of rolling bearings for automobiles, and TGK, a manufacturer of compressor valves for automobiles, in May. It is said that the aggressive investment promotion activities for Japanese companies, which stopped investing last year, has led to an MOU.