Korean Hyosung Corporation to build USD 150 mln car component plant in Romania

South Korean Hyosung Corporation plans to start building works on a USD 150 million plant that manufactures car tires and airbags, according to a press release from the Romanian Ministry of Economy. Negotiations were carried out earlier this week during the visit of Lucian Isar, delegate minister for the Business Environment, in South Korea.

Hyosung is a large industrial conglomerate that operates in six segments: heavy industrial systems, industrial materials, chemicals, textiles, construction and international trade business. The company’s shares are listed on the Korea Exchange with a market capitalization over EUR 1.2 billion.

Romania has already attracted important players in the automotive industry. Pirelli manufactures car tyres and steel cords in Slatina (Olt County). Also, it owns a factory for anti-particulate filters for diesel engines in Bumbesti Jiu – Gorj County. The company’s investment in Romania should reach EUR 450 million by 2014. German car-parts makers Continental and Draxlmaier plan to invest EUR 169 million in Romania through to 2013. Meanwhile, Bosch will build a EUR 77 million automotive technology plant in Cluj-Napoca.

Michelin manufactures tyres in the Floresti and Zalau, where there is also a steel cords factory. Meanwhile, Johnson Controls recently opened a car seat factory in Craiova, near the Ford car plant. Apart from Ford, Renault Group owns the Dacia car plant in Pitesti as well as an R&D center.

Lucian Isar met with vice-presidents of South-Korean companies specialized in the power and oil & gas sectors that are planning investments in Romania. Also, the Romanian minister presented the privatization schedule of state-owned energy companies on the Bucharest Stock Exchange (BSE) to Hyun Kun Shin, executive vice-president of Korea Gas Corporation. The Romanian government plans to sell this year minority stakes in state-owned gas companies Transgaz and Romgaz on the BSE.

The delegate minister spoke with Dong Ik Lee, vice-president of Korea Investment Corporation, about the Romanian capital market and the creation of investment or risk funds that would provide international exposure to Romanian companies.

Representatives of the two countries signed an industrial cooperation protocol and a memorandum of understanding during the Committee for industrial cooperation Romania – Korea Republic that was organized between May 21 and May 22 in South Korea.