Signal of Shipbuilding Revival... Korea's First Shipbuilding Equipment R&D Center Established in Busan

At 11 a.m. on the 29th, the city signs an MOU for R&D Campus Construction Investment with Oriental Precision, the No.1 company in Korea's ship crane market

Eco Delta City to house Korea's first independent R&D center on a 3,500-pyeong site... 25 billion KRW investment, over 80 new hires including research staff

On the 29th at 11 a.m., Busan Metropolitan City will sign a memorandum of understanding for investment with Oriental Precision & Engineering, the leading company in the domestic ship crane market, for the establishment of the 'Oriental Precision & Engineering R&D Campus' at the city hall video conference room.

Aerial view of Eco Delta City. [Image source=Asia Economy DB]

The signing ceremony will be attended by Mayor Park Hyungjoon, Chairman Park Secheol of Oriental Precision & Engineering, President Seo Junwon of Oriental Precision & Engineering, and Park Sehun, Head of the Urban Division at Korea Water Resources Corporation, who will personally sign the memorandum of understanding.

Established in Busan in 1980, Oriental Precision & Engineering is a ship equipment manufacturer specializing in ship cranes and superstructures. The company is listed on KOSDAQ and holds the top market share in the domestic ship crane market.

With the signing of this investment agreement, Oriental Precision & Engineering will become the first domestic ship equipment manufacturer to establish its own research and development (R&D) center on a 3,500-pyeong site within the Eco Delta City research zone.

The company will invest 25 billion KRW for this project and plans to hire more than 80 new technical research personnel by 2025.

The 'R&D Campus' will focus on new product development and research to improve the performance of core products, proactively responding to the demand for eco-friendly ships.

In particular, the establishment of the 'R&D Campus' is expected to consolidate the research capabilities of Oriental Precision & Engineering and its affiliates, allowing them to concentrate on the localization of high value-added and special cranes, and to grow into one of the world's top five ship equipment companies.

The investment in the 'R&D Campus' by Oriental Precision & Engineering is the result of the city's proactive leadership and close collaboration with relevant organizations such as the Ministry of Land, Infrastructure and Transport and Korea Water Resources Corporation, overcoming various obstacles that arose from the early stages of the project.

For Oriental Precision & Engineering, which urgently needed to establish an R&D center to foster specialized personnel for future product research and immediate field deployment, Eco Delta City was considered the optimal location. However, due to differences in timing and method, such as the industrial site allocation in Eco Delta City being scheduled for the second half of this year, the investment was at risk of falling through.

Recognizing the urgent need for investment from outstanding companies for the revival of Busan's shipbuilding industry, the city explained the investment difficulties of Oriental Precision & Engineering to the Ministry of Land, Infrastructure and Transport and Korea Water Resources Corporation, requesting timely provision of the investment site.

In June, the 44th Emergency Economic Countermeasures Meeting was held to discuss ways to remove obstacles to corporate investment with representatives from relevant organizations.

As a result, the Ministry of Land, Infrastructure and Transport and Korea Water Resources Corporation agreed to actively cooperate so that the investment could proceed in a timely manner as requested by the company, taking into account the city's requests, the local economic situation, and the urgent needs of the company, in accordance with relevant laws.

Even after the investment agreement, a project manager (PM) from the newly established 'One-Stop Business Support Team'?created during the city’s organizational restructuring on July 1?will serve as the dedicated contact for Oriental Precision & Engineering, providing swift support for future administrative procedures.

With the attraction of the 'R&D Campus' investment by Oriental Precision & Engineering, Busan will now have the first research and development center among domestic ship equipment manufacturers. The city expects this will secure sustainable competitiveness for its core shipbuilding industry and prevent the outflow of local talent.

Park Secheol, CEO of Oriental Precision & Engineering, said, “We are very pleased to be working with Busan City on the establishment of the ‘R&D Campus,’ a key project for Oriental Precision & Engineering to become the world’s leading ship crane specialist. We will not only hire local talent but also cooperate with local companies to contribute to the development of the regional economy.”

Mayor Park Hyungjoon stated, “I sincerely thank you for investing in the establishment of the Oriental Precision & Engineering ‘R&D Campus’ in Busan, rather than in the Seoul metropolitan area where R&D centers are concentrated. We will provide full support so that local companies can enjoy ample opportunities for growth in the region. Following last year’s successful attraction of Samsung Heavy Industries and Hanwha Power Systems R&D centers, the attraction of the Oriental Precision & Engineering R&D Campus is expected to create a ‘butterfly effect’ for future investment in Busan. The city promises its citizens that we will continue to attract excellent companies, making Busan a city where companies invest and young people seek opportunities.”