▲ Auto Parts Industry

There is good news for the car parts sector, the province’s fourth top strategic industry: the province succeeded in attracting investment from ContiTech, whose annual sales reach $39.1 billion.

After visiting Germany to attract foreign investment, Governor An Heejung signed an MOU for investment with ContiTech Fluid Ltd., in Frankfurt.

ContiTech is a subsidiary of the Continental Group, the world’s third largest auto parts business employing 190,000 people in 47 countries and recording €34.5 billion in annual sales.

This MOU for investment came at the heels of the attraction of investment from four auto parts businesses including NSK, the world’s top car bearing supplier, in 2015.

ContiTech will invest $190 million for a facility for the production of parts like car air conditioner hose on a land parcel measuring 53,762m2 in the foreign investment zone of the Cheonan 5th General Industrial Complex by 2020.

The Chungcheongnam-do Provincial Government and Cheonan will provide infrastructure-related and administrative support for ContiTech to establish and operate the facility smoothly.

Chungcheongnam-do expects the investment to have the following results over the next five years: 365 billion won in sales; direct employment for 350 people (500-plus in the future); production inducement worth 300 billion won; 600 billion added value, 135 billion won worth of export, and 115 billion won worth of import substitution effect.

ContiTech plans to foster Cheonan as the regional headquarters in Asia by building a factory in Cheonan this year, integrating the two existing factories into one, and investing in new projects in vacant lands .