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Daewoo Construction Equipment
QUESTION:Could you tell me one plant development in China from Daewoo?
ANSWER: CHINA
Daewoo Heavy Industries Ltd. has received permission from the Chinese
central government to build a large heavy equipment production facility
in Shandong Province, China. Daewoo is financing the entire $34-million
project.
Daewoo will hold a ground-breaking ceremony for the facility in
December [194] in the Yantai Economy Technological Development Zone, and
the new company, Daewoo Heavy Industries Yantai Co., Ltd., will begin
production by early 1996.
Located on a land tract of 200,000 square meters, Daewoo Yantai will
turn out 3,500 excavators, heavy construction equipment and trailers
each year for the Chinese and Southeast Asian markets. The company plans
eventual expansion of production to include lift trucks, diesel engines,
generators and compressors.
Since establishment of formal diplomatic relations between Seoul and
Beijing in 1992, Daewoo Heavy has conducted numerous investment
feasibility studies in China for the heavy machinery project. The
company chose Shandong based on its proximity to Daewoo Heavy's
facilities in the west Korean port city of Inchon and to major
industrial areas of China including Shanghai. Given the increasing
number and scope of China's infrastructure projects such as roads, power
plants and industrial zones, Daewoo expects that demand for excavators
and other heavy equipment will grow rapidly.
Daewoo plans to export over 300 excavators to China before the end of
this year. The company is developing an after-sales service and
maintenance network of 11 facilities in China, including offices in
Heilungjiang and Guangdong provinces. The company is currently training
over 30 Chinese personnel in Korea in service and maintenance for a
two-month period.
Daewoo Heavy Industries manufactures diesel engines; heavy machinery
including construction equipment; precision machines; aerospace products
and components; and industrial vehicles, sedans and minivehicles. Having
merged with the former Daewoo Shipbuilding & Heavy Machinery Ltd. on
October 1, 1994, the company is now also in charge of all shipbuilding
and related production.
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