[Governor Nam visits US ③] Gyeonggi Province signs investment MOUs on with Warburg Pincus·EMP Belstar·Air Products

◇ On the morning of October 26, Governor Nam Kyung-pil, while visiting the United States, poses for a photo after signing an investment MOU at the headquarters of Warburg Pincus on Lexington Avenue, New York. (Warburg Pincus Managing Director Joseph Gagnon on the left, Governor Nam Kyung-pil on the right) ⓒ Gyeonggi Provincial Government

On October 26, Gyeonggi Province Governor Nam Kyung-pil who visited the United States to invite foreign capital into Gyeonggi Province, create jobs, and establish a global startup network, secured USD 1.364 billion (FDI: 590 million) in investments from three US corporations. The investments by these three companies are expected to create more than 1,850 new jobs and help stimulate the economy. 

The company which committed to the largest investment amount that day was Warburg Pincus, a global private equity firm based in the US. Warburg Pincus will invest a total of USD 650 million (FDI: 200 million) in the Ojeong distribution complex in Bucheon City. 

At 11:00am on October 26, Governor Nam Kyung-pil signed an investment MOU with Warburg Pincus Managing Director Joseph Gagnon at the headquarters of Warburg Pincus on Lexington Avenue, New York. 

Per the MOU, Warburg Pincus is expected to build distribution centers in Gyeonggi Province including one at the 122,000㎡ Ojeong distribution complex in Bucheon.

The agreements reached with the three companies will bring the largest inflow of foreign investment in the Korean distribution sector in the past decade. Collectively, the agreements are expected to create up to 1,200 new jobs and induce USD 1.1 billion in production. 

Warburg Pincus is a private equity firm with assets valued at approximately USD 35 billion. Timothy Geithner, who served as the US Secretary of the Treasury in the first Obama administration, is the current president of Warburg Pincus. Gyeonggi Province expects these investment agreements to create a significant number of employment opportunities, stimulate the local economy, resolve some distribution issues in the metropolitan region, and help improve distribution system efficiency. 

Governor Nam said, “With Korean e-commerce growing, the outlook for investment into distribution facilities is bright. I hope you can help create jobs and stimulate the economy in Gyeonggi Province through continued investment. Gyeonggi Province will offer its full support.”

Managing Director Joseph Gagnon responded, “We hope to continue our distribution warehouse business together with Gyeonggi Province.”

Warburg Pincus President Timothy Geithner also attended the signing ceremony and met briefly with Governor Nam. President Geithner said, “Warburg Pincus is the oldest and largest private equity fund in the world.” He added, “We currently have successful distribution businesses around the world and we’ve also invested a lot in China and India. We expect to invest more in Gyeonggi Province.”

Governor Nam returned President Geithner’s remarks, saying, “The Gyeonggi Provincial Government will offer full administrative support to help Warburg Pincus succeed in Gyeonggi Province.”

Eugene Ultra Low Temperature and US EMP Belstar agree to build eco-friendly energy self-sufficient distribution warehouse in Oseong, Pyeontaek

Before signing the MOU with Warburg Pincus, Governor Nam successfully signed an investment agreement worth USD 500 million (FDI: USD 335 million) with EMP Belstar at the Yale Club on Vanderbilt Avenue, New York. Governor Nam signed the agreement together with the CEO of Korea-based Eugene Ultra Low Temperature.  

Governor Nam, Pyeongtaek City Mayor Gong Jae-gwang, Eugene Ultra Low Temperature CEO Yang Won-don, and EMP Belstar President Daniel Jun Yun agreed to build a 92,151㎡ ultra-low temperature distribution warehouse for meat, fish, and frozen fruit. 

According to the agreement, Eugene Ultra Low Temperature will receive funds from its domestic investor company Eugene Group and US corporate investor EMP Belstar for a distribution warehouse in the Oseong Industrial Complex in Pyeongtaek. 

The distribution warehouse will be completely self-sufficient in terms of energy, using discarded LNG cold energy gas and solar energy. It is expected to create over 600 job opportunities in agricultural product processing and more. EMP Belstar is an investment company based in New York that specializes in infrastructure development. It currently administers KRW 1.18 trillion in assets. 

In his opening address, EMP Belstar President Daniel Jun Yun said, “This project will create 700 direct employment opportunities and thousands of indirect opportunities.” President Yun added, “The new facility will use proven eco-friendly technology to recycle waste that would otherwise be discarded into the ocean. Korea will be able to save billions with this technology.”

In response, Governor Nam said, “Gyeonggi Province and Pyeongtaek City will help bring a successful outcome for this investment.” Governor Nam also said, “Apart from direct investment, I’ve heard that Eugene Ultra Low Temperature will create a mutual cooperative fund and help various startups as well as social corporations in Gyeonggi Province. It’s the first such endeavor by a foreign investment company. I think it’s a new model and a great initiative.”

▲ Gyeonggi Province attracts Air Products investment essential in opening of Samseong Godeok Industrial Complex

◇ On the afternoon of October 26 (local time), Governor Nam Kyung-pil poses for a photo while touring facilities subsequent to signing an investment agreement at the headquarters of Air Products in Pennsylvania. The agreement pertains to Air Product investment in the Jangdang Industrial Complex in Pyeongtaek City. ⓒ Gyeonggi Provincial Government

At 3:00pm (local time), Governor Nam also reached an agreement with Air Products to invest in the Jangdang Industrial Complex in Pyeongtaek. He attended the meeting at the headquarters of Air Products in Pennsylvania with Pyeongtaek City Mayor Gong Jae-gwang, Air Products President Seifi Ghasemi, and Air Products Korea CEO Kim Gyo-yeong. 

The agreement brings USD 214 million in investment (FDI: USD 55 million) for a facility that supplies ultrapure nitrogen and hydrogen gas to prevent the oxidation and contamination of semiconductors on a 34,167.2㎡ site located in the Jangdang Industrial Complex in Pyeongtaek. 

This agreement is particularly significant because the gas supply facility of Air Products is indispensable to the Samseong Godeok Industrial Complex currently under construction in Pyeongtaek City. 

Gyeonggi Investment Promotion Division Americas Team Manager Choi Won-gyu said, “Supply of ultrapure gas is necessary 24 hours a day to ensure that the large semiconductor factories in Samseong Godeok Industrial Complex can operate without any problems.” He added, “Air Product’s plant is a critical production facility that can support this function.”

In his welcoming address, Air Products President Seifi Ghasemi said, “The most important value for Air Products is safety. There’s nothing more important than that. We have extremely stringent global safety standards and we haven’t had any safety issues for the past 42 years.” President Ghasemi added, “I understand it’s become an issue in the local community. However Gyeonggi Province, Pyeongtaek City, and Air Products’ Project Team are working hard to address this issue.”

Governor Nam said, “It’s natural for Pyeongtaek citizens to worry about their safety. They suffered a lot because of MERS this summer, so they’re very interested in safety.” The governor also noted, “Despite this, the reason why Gyeonggi Province and Pyeongtaek City signed this MOU with Air Products is because we trust the high standards they have for their safety technology.” 

Air Products began its operations in Korea in 1973. It currently has factories in a number of locations including Ansan, Sihwa-Banwol, Giheung-Hwaseong, Cheongju, Ulsan, Tangjeong, and Gumi. 

Governor Nam and the delegation from Gyeonggi Province will lay flowers at the Tomb of the Unknown Soldier at the Arlington National Cemetery on October 27. After his visit to Arlington, Governor Nam is scheduled to meet with Virginia Governor Terry McAuliffe and discuss means for friendly cooperation between Gyeonggi Province and the Commonwealth of Virginia.

ⓒ Gyeonggi G-News | Kin Jin-kyoung jinkyoungkim@kg21.net 

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