Busan is good

Busan City and Wilo SE sign MOU

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Mayor Hur Nam-sik signed a $30 million Memorandum of Understanding (MOU) with Wilo SE Chief Operating Officer Holger Krasmann on March 8, 2011 at Busan City Hall. 

 

With the MOU, Wilo Korea, the local subsidiary of the Dortmund-based pump manufacturer, will move its overseas factories to the Mieum Parts Industrial Complex (MPIC) of the BJFEZ (Busan-Jinhae Free Economic Zone).

 

Wilo Korea, established in December, 2000, is the No. 1 pump producer in the local market by market share, with 145.6 billion won in sales in 2010. It plans to provide pumps produced in the new factory in the BJFEZ to several local companies.

 

The investment is expected to create 400 new jobs in Busan, definitely contributing to Busan’s economic development. Besides, current employees and their family members are positive about moving to Busan due to its excellent quality of life and educational environment. The attraction of foreign companies like Wilo will also create a bigger ripple effect throughout the local economy. 

 

The MPIC is an industrial complex of 328,000 square meters, which will be established at the end of 2011. BJFEZ is currently constructing the complex, which is already half completed. The agency plans to make the complex a specialized foreign investment area, and is in talks with the central government regarding the issue.

 

A city official said, “If the MPIC is designated as a specialized foreign investment area, the foreign firms can enjoy free lease for as long as 50 years. We expect this will help to attract more foreign investment firms”