Mayor Park Hyung-jun Visits Site to Resolve Challenges
"Advanced Production Line and 330 New Jobs," Company Responds
LS Electric Signs MOU for Busan Plant Expansion Investment
A global company struggling with factory expansion is expected to accelerate a 100 billion KRW investment project thanks to Busan City's swift regulatory reform measures.
Busan City (Mayor Park Hyung-jun) announced on the 26th at 4 p.m. in the City Hall video conference room that it will sign a memorandum of understanding (MOU) for the expansion of LS Electric Co., Ltd.'s Busan plant, a leading domestic power and automation solutions company. Mayor Park Hyung-jun and LS Electric President Oh Jae-seok are scheduled to attend the signing ceremony and sign the MOU in person.
LS Electric is the number one company in the domestic power and automation industry, operating 13 subsidiaries and 14 branches worldwide. It is Korea's top smart energy company with global technological capabilities targeting the world market.
The company's power sector business provides solutions across the entire power industry, including transmission, distribution, and renewable energy. The automation division offers solutions related to smart factories based on power consumption efficiency.
With this investment, by the end of this year, LS Electric plans to invest 100.8 billion KRW to expand the factory on approximately 4,000 pyeong of idle land next to the ultra-high voltage production building at the Busan plant. They will add two vacuum pressure drying (VPD) facilities and establish advanced production processes including assembly lines, testing rooms, and welding shops.
Through this, the company aims to increase its existing annual production capacity from 200 billion KRW to about 700 billion KRW and hire over 330 new employees to build a core production base for power infrastructure such as ultra-high voltage transformers.
Since establishing Korea's first high-voltage direct current (HVDC) production base in 2011 and commencing full-scale operations, LS Electric's Busan plant has played a pivotal role in the regional economy by cooperating with local companies and focusing most of its production on exports.
This agreement is regarded as a case where Busan City successfully attracted investment through customized support for companies by removing investment obstacles and resolving various difficulties.
LS Electric faced difficulties in investment due to delays in several permits, including a request last December to open a temporary construction passage for the Busan plant expansion. Busan City and the Busan Chamber of Commerce and Industry established a cooperative system to resolve these issues and ensure the construction schedule proceeded smoothly.
Additionally, on January 23, Mayor Park Hyung-jun visited the construction site to understand the challenges faced by companies struggling with administrative regulations and discussed solutions, taking the lead in resolving corporate difficulties.
Busan City, committed to leading the resolution of unreasonable regulations, plans to form a "one team" with related organizations such as the Busan Chamber of Commerce to provide rapid administrative support and resolve various difficulties to the fullest extent.
Oh Jae-seok, President of LS Electric, said, "Through this Busan plant expansion investment, we have strengthened our core competencies to grow as a top player in the global power market. We are grateful to Busan City for its unwavering support for corporate activities and will contribute to economic development through local talent recruitment and win-win cooperation with local companies."
Mayor Park Hyung-jun said, "We appreciate that a good company has decided to reinvest in Busan, and we hope this expansion investment will become a strong pillar for both regional economic revitalization and the national economy. Busan City will strive for regulatory reform and do its best to attract companies and create jobs."
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