Global Auto Parts Company Hwashin Invests 80 Billion Won to Build Factory in Yeongcheon... Reduces Changzhou Operations in China

A bird's-eye view of the High-Tech Park district in Yeongcheon, Gyeongbuk, where Hwashin will build a factory with an investment of 80 billion KRW.

[Asia Economy Yeongnam Reporting Headquarters Reporter Koo Dae-sun] Global automotive parts manufacturer Hwashin is investing 80 billion KRW to build a factory in Yeongcheon.

On the 19th at 3:30 PM, Gyeongbuk Province held a signing ceremony for a memorandum of understanding at Yeongcheon City Hall attended by about 20 people including Choi Ki-moon, Mayor of Yeongcheon, Lee Dal-hee, Deputy Governor for Economy of Gyeongbuk Province, Choi Sam-ryong, Head of Daegu-Gyeongbuk Free Economic Zone Authority, Jung Seo-jin, CEO of Hwashin, and members of the Gyeongbuk Provincial Assembly. Hwashin agreed to downscale its business in Changzhou City, Hebei Province, China, and make a new investment in Yeongcheon.

With this domestic return investment, Hwashin plans to invest 80 billion KRW by 2025 in the Yeongcheon High-Tech Park district, a free economic zone, to build a factory of 61,884㎡ for manufacturing lightweight automotive chassis facilities and hire about 120 new employees.

Since its founding in 1975, Hwashin has specialized in manufacturing automotive chassis and body parts, achieving continuous growth. It was selected as a World Class 300 company in 2012, earned a Technology 5-Star rating in 2013, and was recognized as a Root Enterprise and a top Small and Medium Parts and Materials company in 2022, demonstrating its high technological capabilities.

Headquartered in Yeongcheon, Hwashin and its eight affiliates including Hwashin Precision, Hwashin USA, and Hwashin India have annual sales exceeding 1.1643 trillion KRW, with over 1,000 employees in domestic affiliates alone.

This domestic return by Hwashin follows its 2015 expansion into Changzhou City, Hebei Province, China, to supply parts to finished car manufacturers. However, due to downsizing of partner companies and worsening local economic conditions, it decided to return to Korea. In November, it was selected by the Ministry of Trade, Industry and Energy as a supported domestic return company.

Since 2020, Gyeongbuk Province’s support policies for domestic return companies have attracted 10 companies back from overseas, resulting in investments exceeding 350 billion KRW and creating over 530 jobs.

Jung Seo-jin, CEO of Hwashin, said, “Through establishing a region-based lightweight and eco-friendly electric vehicle parts production factory, we will strive to contribute not only to Hwashin’s growth but also to job creation and economic revitalization in the region.”

Lee Dal-hee, Deputy Governor for Economy of Gyeongbuk Province, said, “We expect Hwashin’s domestic return investment to bear successful fruit and for the company to grow further as a global enterprise. We will always communicate with companies to actively resolve investment obstacles and share various government support policies to ensure vigorous investment.”

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