Busan-Jinhae Free Economic Zone
Investments of European companies are surging to Mieum Components and Materials Complex, the foreign investment area of the Busan-Jinhae Free Economic Zone (BJFEZ).
BJFEZ signed an MOU with Burckhardt Compression, headquartered in Zurich, Switzerland, for a US$20 million (approximately 20 billion won) investment in a 9,986m 2 area of the Mieum Components and Materials Complex foreign investment zone at the BJFEZ office located at Songjeongdong, Gangseo-gu, Busan on August 23. Swiss Burckhardt Compression, established in 1844, is a major global company in reciprocating gas compressors, and achieved sales revenues of US$500 million (approximately 500 billion won) in 2013.
A reciprocating gas compressor, the main product of Burckhardt Compression, is an essential device for offshore plants and gas carriers, and is widely used in major Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) vessels worldwide.
Burckhardt Compression has sales and services networks in 80 countries worldwide, and maintains its stature as a global pioneer through active R&D activities. Burckhardt Compression plans to build a large production facility in Mieum Components and Materials Complex, the foreign investment area of BJFEZ.
After the MOU exchange, a contract for lands will follow late next month. Construction will start immediately afterwards, and production will begin early next year.
Seo Seok-soong, Commissioner of the BJFEZ, said, “Thanks to the investment of Burckhardt Compression, 400 direct and indirect jobs with 30 subcontractors are expected to be created. Above all, product competitiveness and exports of regional shipbuilding and offshore plant businesses will be enhanced through transferring advanced technologies.”
The city of Busan and BJFEZ are attracting foreign companies by forming the 328,000m2 Mieum Components and Materials Complex foreign investment zone, leasing the space for a maximum of 50 years, and providing necessary administrative support for business operations such as licensing.
So far, investors into the complex include Wilo (March 2012, Germany), a manufacturer of liquid and air pumps; Geislinger (April 2012, Austria), a manufacturer of anti-vibration dampers; Bosch Rexroth Korea (May 2012, Germany), a manufacturer of oil hydraulic equipment; Höganäs Korea Production (January 2013, Sweden); Hamai Korea (March 2013, Japan); Praxair Korea (December 2012, U.S.); and Lanxess Korea (February 2014, Germany).
It is easy to understand, then, that BJFEZ scored the top in the national free economic zone performance evaluation of the government this year. BJFEZ announced on August 24 that they recorded the highest scores in unit zone evaluation, foreign direct investment (FDI), and domestic corporate investments through sturdy development projects and active investments.
Accordingly, BJFEZ will be awarded with 732 million won (US$718,933) of operating expenses from the government.
In by-sector evaluations as well, BJFEZ stayed on the top in business development and the corporate support sector.
The national free economic zone performance evaluation is executed by an evaluation committee consisting of civil professionals based on the previous year’s performance, in order to promote business development and foreign investment through competition.