Gyeonggi Province has attracted a USD 9.25 million investment from Bishop, an Australian car steering system provider.

Gyeonggi Governor Kim Moo-soo participated in a signing ceremony for an investment MOU between Gyeonggi Province, Bishop, and Hwasung Precision at the Marriott Hotel in Sydney on April 21. Bishop President Bruce Grey and Hwasung Precision President Choi Byeong-su joined the ceremony.

Bishop plans to work jointly with Hwasung Precision in early 2009 to complete a plant built by a Gyeonggi construction firm in Hyeongok-dong, Pyeongtaek City, and is investing USD 18.5 million toward the project. It plans to hire 40 researchers and employees, and will launch full operations in November of 2009. The plant will produce variable gear ratio (VGR) rack bars, which allow drivers to enjoy varied handling at high and low speeds, as well as when they are parking.

Though based in Australia, Bishop also operates in Germany and the US, and holds a global market share of 23.8% in the steering system market, making it the top company in the world in its field. It serves as a supplier for Mercedes Benz, and plans to supply its products to car part manufacturers in Korea, including TRW, Hyundai Mobis, and Mando.

Governor Kim Moon-soo said, “As everyone is aware, Bishop is the world’s best car steering system provider. I am confident that the entry of Bishop into Gyeonggi Province in partnership with Hwasung Precision will benefit Korea’s automobile industry. As the governor of Gyeonggi Province, I pledge my support and the support of all related government agencies to the success of Bishop’s future Korean operations.”

Governor Kim also added, “In many ways, Korea has not been an investor-friendly nation in the past. However, the government has accelerated its efforts for global exchanges and cooperation, as seen in the recent FTA negotiations undertaken since President Lee Myung-bak took office. I expect that our international exchange and cooperative endeavors will be further expanded.”

Bishop President Bruce Grey said, “As the demand for VGR is rapidly growing in global markets, fueled by the strategic need of auto makers around the world to provide differentiated features, we decided to respond strategically to changes in the investment environment by securing our base for Asian market entry in Gyeonggi Province, thereby adding to our production bases in Germany and the US. I would like to express my gratitude for the active support of Governor Kim Moon-soo.”