○ Japan’s ITO to use South Korea as main production base by investing in small-sized LPG storage tanks
○ Move to diversify energy supply sources for Koreans and bring more convenience to people in rural areas

The Gyeonggi Province (Governor Nam Kyung-pil) held on August 8 a ceremony for signing a Memorandum of Agreement (MOA) at the headquarters of KPP in Poseung Industrial Complex in Pyeongtaek. The centerpiece of the MOA is the $29 million investment from Japan-based ITO – which boasts of the world’s No.1 valve-related technology – for the production of small-sized LPG tanks and hiring of 150 Koreans as its employees.

KPP (CEO Kang Young-seok) pushed through with the joint venture with ITO based on strategic considerations in connection with the growing market for small-sized LPG tanks in Japan and Southeast Asia.

The joint venture established by KPP & ITO is expected to upgrade preheat powder coating and welding technologies by one notch and produce small-sized LPG tanks equipped with regulators, vaporizers, and valves.

The LPG market has been stalled due to the policy for expanding the use of urban gas. Recently, the Ministry of Commerce, Industry, and Energy started pushing through with a project for replacing the LPG containers used in households with small-sized LPG tanks; it will increase demand for the latter particularly in populous sections of rural areas.

The use of small-sized LPG tanks is increased in Japan, and the tank is welcomed as a convenient means of energy supply in Southeast Asia particularly Indonesia; thus brightening export prospects.

The Gyeonggi Province decided to provide a 33,000㎡ area adjacent to the KPP headquarters in Poseung in the hopes that such will set an example of a win-win situation for a domestic industry and a foreign investor and serve as a foothold for LPG tank exports.

The case of investment attraction is expected to enhance synergistic effects associated with domestic businesses’ production and invigorate the local economy with the hiring of 150 local employees.