Investment in BJFEZ
Takaoka Toko, a subsidiary of Tokyo Electric Power Company (TEPCO), the largest power company in Japan, and South Korea’s heavy electric equipment producer TACTICO established a joint venture “Takaoka Toko Korea.” The joint venture will sign an agreement with the Busan-Jinhae Free Economic Zone Authority (BJFEZ) on August 28 to locate in the Nammoon Foreign Investment Zone at the BJFEZ in Changwon.
Under the 50-year land lease contract, the company will build a factory that assembles and produces gas insulation systems for substations with the initial investment of US$4 million (4.48 billion won) of foreign capital and 3 billion won (US$2.68 million) of domestic capital.
The factory will be completed and start operation in January next year. It is expected to domestically produce gas insulation systems for the first time in the industry and supply them to the Korea Electric Power Corporation (KEPCO) as well as create new jobs.
Currently, Denmark’s shipbuilding equipment producer Sondex Korea and Tsubakimoto Automotive Korea, a Japanese automotive engine chain manufacturer which receives benefits in the form of a tax reduction for seven years, are located in the Nammoon Foreign Investment Zone at the BJFEZ.