Sumitomo Chemical, a leasing chemical business in Japan, plans to expand its smartphone touch panel production facility in the Poseung Industrial Complex in Pyeongtaek by investing USD 300 million.
On March 23, the Gyeonggi Provincial Office (GPO) reported that it had signed an investment agreement for the said effect with Sumitomo Chemical at the factory of Dongwoo FINE-CHEM in the Poseung Industrial Complex, despite it being a weekend. The following people were in attendance: Gyeonggi Governor Kim Moon-soo, Director & Senior Managing Executive Officer Toshihisa Deguchi of Sumitomo Chemical, and Pyeongtaek Mayor Kim Sun-ki.
Sumitomo’s decision to make an additional investment is for the production of a larger number of touch sensors, which are the core parts of smart devices, as the demand for them is currently increasing rapidly. Under the agreement, Dongwoo FINE-CHEM, a subsidiary of the Japanese chemical business, will expand its existing production facility (298,198㎡) by 6,311㎡ by 2014.
The production of touch sensors for smartphones and tablet PCs, which is based on advanced technology within Korea, is expected to enhance the competitiveness of local smartphone production businesses. Not only that, but the additional investment will also bring about indirect employment effects that are equal to 3,200-plus employees, in addition to the hiring of another 80 employees.
Dongwoo FINE-CHEM is a business that is operating successfully. It has invested a total of KRW 1,440 billion in the sector of the production of LCD films and relevant parts and has garnered a total of 2.3 trillion won in sales. Dongwoo FINE-CHEM employs 2,800-plus employees.
According to the GPO, Japanese businesses are recently increasing their investment in the province drastically. With the investment decision that has been made by Sumitomo Chemical this time, the total amount of investments made by Japanese businesses in the province this year adds up to 856 million USD. This number includes two other previous investment decisions that include one made in January by FCC, which specializes in motorcycle clutches, and one made by NEG, which is a manufacturer of specialty glass for LCDs.
Commenting on the event, Gyeonggi Governor Kim Moon-soo said, “We will spare any administrative support for Dongwoo FINE-CHEM’s successful business in our province and we will continue work to attract more investments from Japanese businesses by using all possible methods, including dispatching investment promotion delegations to Japan and providing investment-related consulting to businesses who are interested in the investments.