‘Binggrae’ Moves into Dongbu Bio Industrial Complex in Cheonan, Chungnam... 1st and 2nd Phase Investments to Proceed Until 2030

Yang Seung-jo, Governor of Chungcheongnam-do (second from the right), is signing an investment agreement at the provincial office on the 15th. Provided by Chungcheongnam-do

[Asia Economy (Cheonan) Reporter Jeong Il-woong] Dairy and ice cream manufacturer Binggrae Co., Ltd. is establishing a new base in Cheonan, Chungnam.

On the 15th, Chungnam Province announced that Governor Yang Seung-jo of Chungnam, Mayor Park Sang-don of Cheonan, and Jeon Chang-won, CEO of Binggrae, met at the provincial office to sign an investment agreement.

The agreement centers on Binggrae investing from June 2022 through 2030 to build production facilities on a 334,108㎡ site within the Cheonan East Bio-Industrial Complex.

According to the agreement, Binggrae will invest 120 billion KRW in the first phase by 2024 to construct a food and beverage manufacturing plant on a 176,442㎡ site, with a second phase investment planned by 2030. The scale and direction of the second phase investment have not yet been finalized.

The company's decision to settle in Cheonan is said to have been greatly influenced by the region's geographical advantages. From the perspective of a distribution company with high logistics costs, Cheonan's favorable transportation conditions made it an ideal location for new production facilities.

In particular, the planned construction of the 'Seoul-Sejong Expressway' near the Cheonan East Bio-Industrial Complex appears to have influenced the company's decision to locate in Cheonan. With the construction of the Seoul-Sejong Expressway and the establishment of the Dongcheonan IC as an access point in the Cheonan section, the company expects significant cost savings in logistics expenses.

It is also rumored that, keeping these geographical advantages in mind, the company had been in close behind-the-scenes contact with Cheonan City even before signing the agreement.

With Binggrae's large-scale investment, the province expects one-time effects from factory construction to generate 1.5068 trillion KRW in production inducement, 529.2 billion KRW in added value inducement, and 5,762 jobs. The province also anticipates the creation of approximately 1,170 new jobs alongside the new factory establishment.

Governor Yang Seung-jo of Chungnam said, “We are grateful that a leading domestic company has decided on a large-scale investment amid the current situation where the local economy is depressed due to the spread of COVID-19,” and added, “The province and Cheonan City will spare no support to ensure that the company and the region can grow together in a mutually beneficial way.”

This content was produced with the assistance of AI translation services.