Busan is good

LS Industrial Systems Builds Large-Scale Production Plant

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The Busan metropolitan government said on November 10 that LS Industrial Systems will break ground to build a large-scale plant to produce stainless steel pipes and power generation equipment in Hwajeon industrial complex within Busan-Jinhae Free Economic Zone on November 17.

LS Group Chairman Goo Ja-hong and Busan Mayor Hur Nam-sik are expected to join the ground-breaking ceremony.

LS Industrial Systems is set to invest KRW 103 billion to complete construction of the 68,000㎡ plant on a 108,400㎡ ground by the end of next year.

The company aims to export 75% of the items produced in the plant.

The Busan government expects the plant, if completed, would create 650 new jobs and turn KRW 600 billion in profits, giving a boost to the local economy.

The company, which changed its name from LG Industrial Systems to LS Industrial Systems in March 2005, has decided to build a production line in Hwajeon industrial complex near Busan New Port to reduce logistics cost for export in addition to its existing plants in Cheongju, Cheonan, Jangheung.

A Busan government official said, "It has been 12 years since Renault Samsung in 1995 that a large company built a factory. The new plant will help the local economy recover from current economic slump."

Source: Yonhap News (November 10, 2008)

** This is an English translation of a Korean news article.