Hanwha Solutions to form industrial complex for chips, auto parts

South Korea's energy service, petrochemical and real estate development company Hanwha Solutions Corp. will build H-Techno Valley, an industrial complex exclusively for semiconductors and automotive parts, in the southern Seoul suburb of Hwaseong, Gyeonggi Province, a key base in the capital area.

The plan is to build a new cradle of the domestic materials, parts and equipment industries by 2027 through investment of 380 billion won ($296.7 million) under a public-private partnership.

Hanwha Solutions on Monday said Hwaseong City Hall gave notice of its approval of the general industrial complex plan for the complex, which will be built in the city's township of Yanggam. The area will house semiconductor and auto parts companies on a site covering 740,000 square meters.

The approval allows the company to begin projects such as land compensation and pre-bidding for spaces in the second half of the year. Civil engineering works and land distribution will start next year with completion slated for 2027.

Over 100 companies submitted letters of intent to move in prior to the start of sales, accounting for 200% of the complex's area.

Expected to become the nation's next major industrial park for chips and automotive parts, H-Techno Valley is also close to semiconductor clusters in the Hwaseong township of Dongtan and Pyeongtaek township of Godeok as well as one for future vehicles in the Yellow Sea region.

The project's economic-generating effects include creation of 7,000 jobs, 2.3 trillion won in production and 92 billion won in added value, as well as major contributions to the economic development of Hwaseong and vicinity.

Hanwha Solutions in 2019 signed a deal with Hwaseong Urban Corp. to promote the project and both invested two years later in H-Techno Valley, a special purpose corporation.

Hanwha Solutions owns 80% and Hwaseong Urban 20% of the complex, which will cost a combined 380 billion won.

Write to Mi-Sun Kang at misunny@hankyung.com