Opening ceremony on Oct 14

Seeks to balance supply and demand

Expected to create annual profit of KRW 11.4 billion 

◇ Gyeonggi Province held an opening ceremony for the ‘Textile Raw Materials Center’ established in Pocheon City. ⓒ Gyeonggi G-News

Realizing a long-cherished wish of the textile industry in Gyeonggi Province, the ‘Textile Raw Materials Center’ opened in Pocheon City. 

With the aim of strengthening the competitiveness of textile manufacturing companies in Gyeonggi Province by securing a balance between supply and demand and saving logistical costs, the province established the Gyeonggi Textile Raw Materials Center in Pocheon City and held an opening ceremony on October 14.

To construct the Gyeonggi Textile Raw Materials Center, located in the Yongjeong Industrial Complex in Pocheon City, a total of KRW 4.9 billion was invested: KRW 1.05 billion from the central government, confirmed after a number of discussions with the Ministry of Trade, Industry and Energy; KRW 1.75 billion from the province; KRW 0.84 billion from the city; and KRW 1.26 from public sources.

Consisting of two warehouses and one administration building with a total floor area of 0.96 acres on a 1.38-acre site, the center will be operated by the Gyeonggi Northern Hwanpyeon Industrial Cooperative Association, the textile association of the province.

Since most textile yarn and fiber suppliers locate in remote local areas, they have charged more for their yarn and fiber, and required advance payments to address high costs in logistics, distribution and storage, as well as problems with bad loans. Such practices have long been a major cause of financial difficulties faced by small businesses.

An official of the Specialized Industries Division of Gyeonggi Province explained, “For the goal of relieving difficulties experienced by textile manufacturing companies in Gyeonggi Province, we had continuous discussions with the Ministry of Trade, Industry and Energy about the necessity and appropriateness of the project. As the result, we were able to start construction in November with funding from the central government, and we’re holding an opening ceremony.”  

The province signed a ‘joint supply and demand agreement’ with yarn and fiber suppliers back in July to support operation of the textile raw materials center, through which a cost reduction of KRW 1.4 billion in logistics and an additional cost reduction of KRW 10 billion are expected. The expected result of KRW 11.4 billion in profit is remarkable compared to the investment.

◇ Location of Gyeonggi Textile Raw Materials Center ⓒ Gyeonggi G-News

ⓒ Gyeonggi G-News | Park Gwan-sik malbut@kg21.net

http://gnews.gg.go.kr/news/news_detail.asp?number=201410131122396808C052&s_code=C052