Mayor Hong Jun-pyo and CEO Kim Chi-hwan Agreement
Daegu National Industrial Complex to Operate by End of 2024
On the 1st at 2 p.m., Daegu City signed an investment agreement with Samgi at the Sangyeok Government Complex in Daegu for the establishment of an electric vehicle parts manufacturing plant on the second phase site of the Daegu National Industrial Complex.
Since its establishment in 1978, Samgi has been a mid-sized company in the Seoul metropolitan area producing automotive parts for various vehicle types, from internal combustion engines to electric vehicles.
To secure a leading position in the rapidly transforming global automotive market centered on eco-friendly vehicles, Samgi plans to invest 94.8 billion KRW in a new manufacturing plant on a 40,962㎡ (12,410 pyeong) site in the second phase of the Daegu National Industrial Complex, which will serve as a global hub for eco-friendly automotive parts business. Samgi currently operates its first plant in Pyeongtaek, Gyeonggi Province, and its second plant in Seosan, Chungnam Province.
Daegu Mayor Hong Jun-pyo and Kim Chi-hwan, CEO of Samgi (right in the photo), are signing a business agreement to establish a new electric vehicle parts factory in Daegu.
At the new Daegu plant, Samgi will develop new products to transition into a future mobility parts specialist company and respond to the rapidly increasing market demand and new orders for related parts. Construction is scheduled to begin in January 2024, with full-scale mass production starting from the end of 2024.
Samgi was recognized for its excellent technology in the global market, having signed the first direct export contract in Korea with global leading automakers Volkswagen and Audi in 2013. Through this investment, Samgi plans to produce 1 million units annually of eco-friendly automotive parts such as motor housings for electric vehicles and transmission parts for hybrid vehicles.
Additionally, Samgi aims to expand into new items such as parts related to electric vehicle drive and safety enhancement, targeting sales of 100 billion KRW from the new Daegu plant alone by 2030, and overall corporate sales of 1 trillion KRW, aspiring to grow into a global top future mobility parts specialist company.
Daegu City is promoting the creation of a mobility motor specialized complex centered on electric vehicle motors to foster the future mobility industry. The city is focusing on building a future mobility industry ecosystem through differentiated strategies, including support for testing, certification, commercialization, fundamental technology development, innovation in materials and parts technology, and workforce training.
In particular, Daegu City is strengthening support projects such as the future vehicle transition win-win package and business restructuring consulting to facilitate the region’s automotive industry transition to future vehicles. It also plans to establish a Mobility Innovation Center within Daegu Technopolis to support the development of new technologies required for customized electric vehicles.
Kim Chi-hwan, CEO of Samgi, stated, “Through this investment, we will leap forward as a global leading company in electrification parts such as electric vehicle drive motor housings and respond to the accelerating trend toward eco-friendly vehicles. We will also make greater efforts to contribute to creating new jobs and revitalizing the local economy.”
Mayor Hong Jun-pyo said, “The large-scale investment by Samgi, an automotive parts company based in the Seoul metropolitan area, is expected to create synergy with Daegu City’s mobility motor specialized complex and play a significant role in Daegu’s leap as a future mobility hub city. We will spare no administrative and policy support to help Samgi grow into a leading company representing Korea’s core eco-friendly vehicle parts industry.”
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