Machinery manufacturers fleeing to China
Local heavy machinery makers are moving their production facilities to China, raising concerns that hollowing-out of the key sector may deal a serious blow to the nation's industry.
Korea's major heavy equipment manufacturers, including Hyundai Heavy Industries Co., accelerated their China operations recently in order to meet growing demand and to capitalize on cheap labor and stable labor-management relations there.
Hyundai, the world's largest shipbuilder, signed a contract late last month to set up an electronics joint venture in China's Jiangsu Province.
Beginning next April, the new enterprise, dubbed Jiangsu Hyundai Nanji Electrical Company Ltd., will produce various electronic and electric devices such as switchboards, medium- and low-voltage circuit breakers, power transformers and locomotive equipment.
Hyundai plans to develop the venture as its electro-electric division's second production base and a stronghold for sales in China as well as for export to the rest of Asia and the Middle East.
Daewoo Heavy Industries & Machinery Co. completed a Chinese plant in the first half to produce mini excavators weighing 1 ton to 4 tons per unit for supply in China and Europe.
The production volume will begin with 500 units this year to reach over 1,000 units next year. The company established its Chinese sales unit, Daewoo Heavy Industries Yantai Co., in Yantai, Shandong Province in June 1996.
In addition, Daewoo held a signing ceremony in April to build a large-scale machine-tool plant in the same city to churn out over 1,000 units of tuning and machining assemblies annually starting early next year.
Samsung Techwin Co. also concluded a license contract with a Chinese company Wuxi Compressor for technology transfer and on-the-spot production of turbo compressors.
By Seo Ji-eun
(spring@heraldm.com)
2003.11.05
koreaherald.co.kr |
