GWANGJU, March 14 (Korea Bizwire) – Attention is being drawn towards the city of Gwangju with news that a Chinese automaker plans to establish a large electric car factory in the area.
According to Gwangju city officials, the Korean office of China’s Joylong Automobile will sign an MOU with the local government to build an electric car factory, with the city providing administrative support.
The magnitude of the investment is still under discussion, but it has been reported that Joylong is considering the investment of 250 billion won by 2020 to build a factory with the capacity to produce 50,000 cars a year.
Joylong Automobile is an automaker based in Yangzhou, China, specializing in producing vans. It is one of the technology leaders among Chinese automakers.
To improve product quality, Joylong has been reported as eyeing an entry into the Korean market.
Gwangju officials explained that the possibility of collaboration with the many auto parts businesses in the region was one of the attractions that lead to the agreement.
The local government anticipates that once the factory is established, Gwangju will secure a place as an electric car production base, with the two allies hoping to attract related businesses in the future.
The local government of Gwangju is known to have suggested a joint investment plan to the government of Jeju Island. In March 2015, Gwangju signed an agreement with Jeju and the Korea Electric Motor Leaders Association to expand supply and promote the industry.
By M.H.Lee (email@example.com)