– Expected to Improve the Status of Gyeonggi Province as a Mecca of the Automobile Industry –

On October 15 at 11:00 am, Gyeonggi Province will host a completion ceremony for an automobile emissions R&D center and a manufacturing plant run by Faurecia Korea that will operate in Hwaseong City, which is emerging as a hub of culture and high technology.

The ceremony will be attended by more than 200 guests from home and abroad, including Gyeonggi Governor Kim Moon-soo, Senior Vice President of Faurecia Jean Marc Hannequin, CEO of Faurecia Korea Lee Seung-gyu, and Hwaseong Mayor Choi Young-geun.

The R&D center, which is located in Jangan Complex 1, and the manufacturing plant, which is located in Jangan Complex 2, were built through FDI of USD 6 million and USD 26 million, respectively, amounting to a total FDI of USD 32 million. The R&D center features new product test devices and more than 40 new researchers for production of mufflers and converters for gas emission systems, while the manufacturing plant produces mufflers and converters, the devices that reduce gas emission.

A converter is an emitted gas purifier that burns CO at high temperatures. It is installed mostly in diesel automobiles as a green device, and is already a core part of gas engine automobiles.

Faurecia is a world-leading automobile parts manufacturer based in Nanterre, France. It is a global company specializing in core parts, such as gas emission systems, and has the ninth largest revenue among automobile parts manufacturers worldwide.

Most notably, the company has emerged as a leader of automobile module manufacturing, and is the world’s largest producer of emission systems, door panel/modules, and instrument panels, the world’s second largest producer of front bumpers, and the world’s third largest producer of car seats. The company recorded revenues of approximately KRW 16 trillion in 2007, and hires more than 60,000 employees worldwide.

Faurecia decided to make new investments to respond to an increase in parts demand from Hyundai Motors. It has invested a total of USD 38 million in Gyeonggi Province, including USD 6 million for R&D of emission system parts in November 2006, USD 6 million for a car interior parts R&D facility at Kins Tower in Seongnam in April 2007, and USD 26 million for the construction project that was completed in June 2007.

Commenting on the investments made by Faurecia, Governor Kim Moon-soo said, “As I concluded the agreement for investments in the technology R&D center and the manufacturing plant during my term, it is highly meaningful for me to see the successful completion of the construction project of Faurecia today. The world-class technology of Faurecia and excellent HR of Gyeonggi Province will create remarkable synergies, and improve the technological competencies and competitiveness of finished car manufacturers. Based on a firm partnership between Gyeonggi Province and Faurecia, I will spare no efforts in providing administrative and financial support for the success of Faurecia.

Senior Vice President Hannequin of Faurecia Group said, “I am confident that the completion of the R&D center and the plant will fortify our partnerships with Hyundai and Kia, and allow Faurecia to become a more competitive strategic partner. I would like to extend my gratitude to Gyeonggi Province for providing favorable investment conditions and business-friendly environments, and for their customer-centered administrative mindset.”

A spokesperson from Gyeonggi Province said, “As most of Faurecia’s products are being recognized for their world-class quality and technology, the completion of Faurecia’s R&D center and manufacturing plant will significantly help domestic carmakers to steadily strengthen their competitiveness. Three out of Korea???s 15 car manufacturing plants are located in Gyeonggi Province, with 28% of the share, and 30% of more than 900 1st-tier car parts manufacturers are located in Gyeonggi Province. Accordingly, the Province will strive to attract more global partners and facilitate the development of the automobile industry in the Province.”