Manufacturing « North Korean Economy Watch

Archive for the ‘Manufacturing’ Category

A Year in Waiting for Steel Plates

Wednesday, September 19th, 2007

Daily NK
Kim Chan Ku
Institute for Far Eastern Studies
9/19/2007

(UPDATE: On Oct. 23, [2008] the State Department blacklisted two North Korean companies, Korea Mining Development Corp. and Korea Taesong Trading Co., for violating U.S. bans on the sale of equipment used in building missiles or other weapons of mass destruction to Iran and Syria. Citation: “North Korean Plane Was Grounded at U.S. Request “, Wall Street Journal, Jay Solomon, 11/1/2008 )

Kimchaek boasts one of the largest steel factories and fishing ports in North Korea especially that of Daesung General Company’s east coast headquarters.

However, at once-famous seaport everything including ship, freezer, packing factory was obsolete and rust. Most of the Soviet-built machines in factories were at least 20 to 30 years old. And there were neither enough spare parts to fix machinery nor job orders, so the factories had stood still for a long time.

I consulted with local North Korean officials in Kimchaek and reached an agreement: ship repair dock will be built in Kimchaek, steel products necessary for building floating dock would be Daesung General Company’s responsibility, and other issues concerning building land factory and management of joint-stock company would be decided in Pyongyang.

Also we finished negotiation over fish export and Pollack fishing by trawler. Thus basic problems were solved.

I came back to Pyongyang on September 30. And another businessperson, Mr. Kim Sung Chan of Pamco Trading, told me his will to invest fifty percent of the capital.

All of sudden, Daesung General Company notified us that among our previous agreements, only the site of repair dock was decided and asked us to wait, promising final decision would delivered in one month.

To start first phase of building factories, it was most critical to have steel products ordered from state. We believed the promise from the North (to take responsibility of providing iron plates) and returned to America. However, after two month had passed, there was no news from Pyongyang. Curious, I called back and was told to visit North Korea as soon as possible.

On December 9, 1989 I arrived at Sun An International Airport. In Pyongyang, vice president of Daesung General Company (president was absent, traveling abroad) said “we asked the state for iron plates, but production plan was omitted in 1990 fiscal year so one more year of waiting is inevitable, or send us steel plates.”

In other words, our business plan was totally embarrassed and we had to make a new one. Again, I conferred with Mr. Kim and found out a solution, which was to buy a used floating dock from an American port. There was a fifty-year old used floating dock in Miami, Florida that we were able to buy. If repaired, it seemed available for another twenty years.

Finally, two obstacles had our plan failed. Firstly, it was supposed take at least three month and five hundred thousands US dollars (twice the price of dock) to convey the floating dock by sea. Secondly, (and more fundamental problem) the US government would not permit to sell the dock to North Korea. We were not even possible to transport the dock to Hong Kong and then to North Korea.

Because acquisition of required steel plate for floating dock was failed ultimately, the daring business had gone nowhere. Wasted much money and more than a year of time, I was so depressed at that time[.]

Posted in Agriculture, Daesung Trading Company, Economic reform, Foreign direct investment, Light Industry, Manufacturing, Sea shipping, Steel, USA | Comments Closed

Food Makers Set Eyes on North Korea

Wednesday, September 12th, 2007

Korea Times
Jane Han
9/12/2007

While many local food manufacturers have been setting up factories and farms overseas to take advantage of low labor costs and top grade raw materials, some say equivalent conditions await just a few hours up north, in North Korea.

Industry experts say that farmed goods grown in the North are almost free of pesticides, putting it up to par with those imported from well-known clean and green countries like Australia.

And with the forthcoming inter-Korean summit next month, they say a friendlier mood has smoothed out business conditions for them to make inroads through the Demilitarized Zone.

“We’ve had ongoing plans to set up farms there, but on and off political tensions have interfered with progress,” said Choi Yong-sam, a spokesman of Maniker, one of the nation’s leading chicken-processing companies.

But this time, he added, things are looking brighter and company officials are optimistic that the project _ the first direct investment by a South Korean company outside an inter-Korean industrial complex if completed _ will see results.

Maniker executives are set to meet with North Korean officials in mid-September and visit possible farm sites, located between Sariwon, south of Pyeongyang, and Samilpo, which is near Mt. Geumgang, Choi said.

“The farm will be win-win for both North and South,” he explained, hopeful that the cooperation will ultimately benefit the inter-Korean relationship.

Another food maker, Dongwon F&B, recently became the first major corporation to get land parceled out in the Gaeseong Industrial Complex.

The company is planning to produce mainly dried seaweed and “kimchi” (Korean pickled cabbage) at the new facility set to be completed in December next year.

“Because the southern part of the peninsula is growing hotter, the conditions to raise cabbage have been deteriorating,” said company spokesman Sung Jeong-dong. “We’re expecting that farming conditions there will allow better quality products.”

He added that because the lot is quite sizeable at 32,452 square meters, with just 6,500 square meters of it being used for the first phase of construction, the manufacturer is already considering further expansion.

“It’s our first time though, so we don’t know what to expect. There may be some bumps along the road,” Sung explained, referring to Pyeongyang’s strict and frequently changing regulations.

Snack maker Orion in April gave away 150 tons of seed potatoes worth about 200 million won to the North, for both humanitarian and business purposes.

The company is eyeing to have its raw goods for potato chips grown there to meet the demand for potatoes and work around the limited local farming capacity.

“More food makers are definitely turning their eye north, but the whole process is still at early stages with immature systemization so it’s too early to tell the industry-wide impact,” said Jung of Dongwon F&B. “But a reconciliation mood many times happens through economic means, so hopefully this will be one of them.”

Posted in Agriculture, Economic reform, Foreign direct investment, International Aid, Manufacturing | Comments Closed

Inter-Korean trade jumps 36.1 percent in January-August period

Thursday, September 6th, 2007

Yonhap
Sohn Suk-joo
9/6/2007

Inter-Korean trade surged 36.1 percent in the first eight months of this year, compared with the same period of a year earlier, the Unification Ministry said Thursday.

The two-way trade volume increased to US$1.05 billion in the January-August period, up from $775.52 million in 2006, thanks to brisk trade of fishery items and light industry products made at a joint industrial complex in the North Korean border city of Kaesong.

The industrial complex is the crowning achievement of a landmark summit between the leaders of the two Koreas in 2000. South Korean businesses use cheap North Korean labor to produce goods in Kaesong where some 26 South Korean factories employ about 15,000 North Korean workers.

“Inter-Korean commercial trade increased 37.1 percent to $809.71 million, while non-commercial trade rose 32.8 percent to $245.41 million during the same time span,” the ministry said in a statement.

Posted in Agriculture, Kaesong Industrial Complex (KIC), Light Industry, Manufacturing, South Korea, Special Economic Zones (Established before 2013), Trade Statistics | Comments Closed

North Korea Uncovered v.4 on Google Earth

Wednesday, August 29th, 2007

The most authoritative, publicly available map of North Korea
Version 4: August 29, 2007

Download it here

This map covers North Korea’s agriculture, aviation, cultural locations, manufacturing facilities, railroad, energy infrastructure, politics, sports venues, military establishments, religious facilities, leisure destinations, and national parks. It is continually expanding and undergoing revisions. This is the fourth version.

Additions to the latest version of “North Korea Uncovered” include the city of Manpo along the Chinese border, KEDO, Kumgang Resort expansion, Kaesong Industrial Zone, as well as a few more parks, antiaircraft sites, dams, mines, canals, etc. I have also added more links in the menu which will tell the viewer a bit about the locations themselves. I have also changed the color scheme to make the collage easier to view.

Disclaimer: I cannot vouch for the authenticity of many locations since I have not seen or been to them, but great efforts have been made to check for authenticity. These efforts include pouring over books, maps, conducting interviews, and keeping up with other peoples’ discoveries. In many cases, I have posted sources, though not for all. This is a thorough compilation of lots of material, but I will leave it up to the reader to make up their own minds as to what they see. I cannot catch everything and I welcome contributions.

I hope this map will increase interest in North Korea. There is still plenty more to learn, and I look forward to receiving your additions to this project.

Posted in Agriculture, Architecture, Automobiles, Aviation, Biotech, Dams/hydro, Education, Electricity, Energy, Environmental protection, Fiscal & monetary policy, Forestry, Gasoline, General markets (FMR: Farmers Market), Google Earth, Health care, Hoteling, Hwanggumphyong and Wihwado Economic Zones (Sinuiju), International trade, Kaesong Industrial Complex (KIC), Labor conditions/wages, Leisure, Library, Light Industry, Lumber, Manufacturing, Military, Mining/Minerals, Mt. Kumgang Tourist Special Zone, Political economy, Pyongyang International Trade Fair, Pyongyang Metro, Railways, Rason Economic and Trade Zone (Rajin-Sonbong), Real estate, Sea shipping, Special Economic Zones (Established before 2013), Tourism, Transportation, Water, Wind | 1 Comment »

Hyundai Motor’s union to provide aid to North Korea despite looming strike

Wednesday, August 29th, 2007

Yonhap
8/29/2007

The labor union of Hyundai Motor Co. decided to provide aid to North Korea to help a South Korean humanitarian group expand a corn-noodle plant in North Korea, union officials said Wednesday, despite the union’s steps to stage a possible strike next week.

The workers at Hyundai, South Korea’s largest automaker, are scheduled to vote Thursday on whether to launch a walkout over higher wages and better working conditions, almost an annual ritual for the 44,000-strong union.

In a statement, the union said it will provide the aid worth 500 million won (US$530,786), including noodle-processing machines, a minibus, a truck and a power generator, to the corn-noodle plant in the North Korean capital of Pyongyang.

The aid will be provided via the Seoul-based humanitarian group Movement for One Korea, an official at Hyundai’s union said by telephone from Ulsan, a port city on the nation’s southeast coast where Hyundai’s main plant is located.

“We decided to provide the aid to help North Korea recover from its food shortage and to implement the union’s corporate social responsibility,” said the official, refusing to give his name.

The timing and other details have yet to be decided, he said.

It is the first time that a union of a private company has decided to give aid to North Korea.

The North has had to rely on international humanitarian aid for the past decade, due to floods, drought and economic mismanagement.

Earlier in the day, conservative newspapers questioned the Hyundai union’s rationale, criticizing it for deciding to give aid to the North as the strike looms.

“It’s an inappropriate time for Hyundai Motor’s union to do this as public criticism is mounting over its 13th consecutive annual strike,” Bae Son-geun, a professor at Korea University, was quoted as saying by the daily Dong-a Ilbo.

Hyundai and its union have had 10 sessions of formal negotiations. The union is demanding an 8.9 percent increase in monthly basic salary, after rejecting the company’s offer of a 5.4 percent rise.

The strike vote will be held on Friday and the outcome is to be announced later in the day or early Saturday, union officials said.

So far this year, Hyundai workers staged a 13-day partial strike over a bonus dispute and a proposed free trade agreement with the United States which they argued could hurt the livelihoods of farmers and factory workers.

Hyundai’s union has held walkouts every year except 1994 since its foundation in 1987. In the past 20 years, the union has gone on strike for 313 days, costing the company 8.94 trillion won (US$9.53 billion) in total lost sales, according to the automaker.

Posted in Automobiles, Foreign aid statistics, International Aid, Light Industry, Manufacturing, South Korea | Comments Closed

Chinese Firm to Open Plant in Gaesong

Tuesday, August 28th, 2007

Korea Times
Ryu Jin
8/28/2007

A Chinese company is going to be the first foreign enterprise to do business in the inter-Korean industrial park in the North Korean border city of Gaeseong, according to the Korea Land Corporation (KLC) Tuesday.

KLC officials said that Dashing Diva, the South Korean branch of Chinese artificial nail manufacturer Tianjin Jci Cosmetic, signed a contract to purchase a 6,000-square-meter lot in the Gaeseong Industrial Complex.

It marks the first time that a foreign company has bought a site in the inter-Korean joint venture, where about 15,000 North Korean workers commute to factories owned and operated by South Koreans.

While the first-phase pilot site has so far been occupied only by South Korean firms, the KLC designated a portion of land in Gaeseong for foreign businesses to boost the industrial complex’s international image and put the lots on sale in June.

Despite the South Korean government’s efforts to lure foreign investment there, no firms had come from outside the country until recently. Multinational sanitary goods maker Kimberly-Clark has also visited the complex to discuss investment there.

Located just north of the border, the Gaeseong Industrial Complex is a flagship project signifying reconciliation between the two Koreas, which remain still technically at war after a fratricidal conflict more than half a century ago.

Despite potential risks stemming from political uncertainty, the special zone has an inescapable economic logic: cheap labor and land of the North combined with the capital and technology of the South.

Gaeseong upbeat with foreign entrants
Korea Herald
Kim Yoon-mi
8/17/2007

The recent submissions of applications by two Chinese companies hoping to build factories in the Gaeseong industrial park in North Korea have further brightened the outlook on the joint economic project between the two Koreas, industry sources said yesterday.

South Korean government agency, The Korea Land Corp., said both a Chinese artificial fingernail manufacturer and a plywood producer submitted documents on July 30 in hopes of securing 6,000 square meters and 29,000 square meters of land, respectively, at the Gaeseong industrial park.

The Korea Land Corp. rents land in Gaeseong to individual South Korean or foreign companies under 50-year leases. The company had initially announced in late May that there were six applications available for foreign companies for 1,750,000 square meters of land in Gaeseong. No foreign applications were received until the two Chinese companies submitted their applications in July, according to an official at Korea Land Corp., who declined to be named.

“For foreign companies to build factories in Gaeseong, they should establish entities in South Korea. So, we are waiting for the two Chinese companies to finish that procedure first,” the official said.

The contract with the two companies is expected to be completed late this month, the official said.

Experts say Chinese manufacturers may have decided to move factories to North Korea because China’s rapid economic growth is raising wages and prices.

Currently, an average North Korean employed by any one of the 26 South Korean companies operating in the Gaeseong Industrial Complex earns $60.37 per month.

There have been unconfirmed news reports that the U.S. paper-based consumer product maker Kimberly-Clark Corp. may try to invest in the North Korean city.

Kimberly-Clark CEO Thomas Falk earlier hinted that the company would be interested in investing in Gaeseong, after he visited the North Korean city in late February.

“Gaeseong industrial part has the best environment (skilled labor) and facilities for South Korean SMEs to step forward…. Kimberly-Clark will be very interested in investment (in Gaeseong),” he was quoted as saying by the local daily, Maeil Business, on March 1.

The unnamed official from The Korea Land Corp. said he could not comment on the Kimberly-Clark proposition because he is not at liberty to discuss which foreign companies are in contact with his company.

However, the official said many foreign companies have contacted the Korea Land Corp., inquiring about going into North Korea.

The entry of foreign companies into Gaeseong will clearly be a boon for Hyundai Asan, the South Korean operator of major business projects in North Korea, the company’s officials said. This good news comes in light of a second summit between the two Koreas, another upbeat announcement for the park, Hyundai Asan officials said.

Hyundai Asan is in charge of the construction of factories in Gaeseong industrial park and operates South Korea’s tour business to Mount Geumgang resort in North Korea.

The Gaeseong industrial park, near the border with South Korea, was established in 2000 following the first landmark summit between South Korea’s then-President Kim Dae-jung and North Korean leader Kim Jong-il.

Chinese want some Kaesong action
Joong Ang Daily
8/13/2007

Two small Chinese light-industry companies have applied to build factories in an industrial complex in North Korea where South Korean companies are invested, a South Korean state land developer said on Saturday.

The Korea Land Corp. said a Chinese cosmetics manufacturer and a plywood firm submitted documents on June 30 requesting 6,000 and 2,000 square meters of land respectively in the Kaesong Industrial Complex near Kaesong, a North Korean city close to the border with South Korea.

It is the first time that foreign companies have applied to build plants at the complex where 26 South Korean labor-intensive companies are currently operating with a North Korean workforce of 15,000.

By 2012, it’s anticipated the complex will have several hundred South Korean plants employing as many as 500,000 North Koreans. South Korea is responsible for water, electricity and other infrastructure at the complex which opened three years ago.

The complex is a much-vaunted achievement of the first-ever inter-Korean summit of leaders in 2000 in the North Korean capital, Pyongyang. The second-ever summit of Korean leaders is scheduled to begin on Aug 28, also in Pyongyang.

Posted in China, Foreign direct investment, Kaesong Industrial Complex (KIC), Korea Land Corp. (RoK office), Light Industry, Manufacturing | Comments Closed

NK Economy Shrinks 1.1% in 2006

Thursday, August 16th, 2007

Korea Times
Na Jeong-ju
8/16/2007

North Korea’s economy posted negative growth in 2006 for the first time in eight years on decreased production of agricultural and fisheries goods, the Bank of Korea (BOK) said Thursday.

In its estimate for the North’s economic growth, the central bank said the North’s real gross domestic product (GDP) shrank 1.1 percent in 2006 from a year ago, a turnaround from a 3.8 percent expansion in 2005. Until 2006, the North’s GDP had grown for seven years in a row since a 6.2 percent rise in 1999.

The GDP is the total output of goods and services produced within a country.

“Due to bad weather, North Korea’s agricultural, forestry and fisheries production fell with the construction industry remaining sluggish,” the BOK said. “North Korea seems to have suffered a blow as its international relations deteriorated due to its nuclear issues on top of a shortage of energy.”

The economic gap between the two Koreas grew larger last year.

North Korea’s nominal GDP increased 5.8 percent from a year ago to $25.6 billion last year, while South Korea’s GDP rose to $887.3 billion. South Korea’s GDP is 34.7 times larger than that of North Korea, widening from a 32.6-fold difference in 2005.

North Korea’s per-capita gross national income (GNI) came to $1,108 last year, up from $1,056 a year earlier, while South Korea’s per-capita GNI of $18,372 was 16.6 times bigger than that of the North, expanding from a 15.5 fold-difference. The North’s population reached 23.1 million, while the South’s was 48.3 million.

North Korea’s trade remained unchanged year-on-year at $3 billion last year, compared with South Korea’s $634.9 billion. The South’s trade was 212 times bigger than the North’s last year, rising from a 182-fold difference in 2005.

Pyongyang saw its exports dip 5.2 percent year-on-year to $950 million in 2006 as outbound shipments of animal products, non-metal goods and machinery decreased, while imports gained 2.3 percent to $2.1 billion.

Inter-Korean trade increased 27.8 percent from a year earlier to $1.4 billion. South Korea’s shipments to North Korea advanced 16 percent to $830.2 million, mainly on increased rice and fertilizer aid.

Inbound shipments from the North jumped 52.7 percent to $519.5 million on a hike in inter-Korean projects and mineral imports, the BOK said.

North Korea’s agricultural, forestry and fisheries industry declined 2.6 percent year-on-year last year, a turnaround from a 5 percent gain in 2005. The construction industry dipped 11.5 percent after gaining 6.1 percent the previous year.

The mining sector growth decelerated to 1.9 percent from 3.5 percent. Its manufacturing sector expansion slowed to 0.4 percent from 4.9 percent. The services industry grew 1.1 percent last year after increasing 1.3 percent in 2005, the central bank said.

North Korean economy posted 2006 downturn
Joong Ang Daily
Jung Ha-won
8/17/2007

North Korea’s economy shrank for the first time in eight years last year as agricultural production declined due to natural disasters and sluggish infrastructure development, according to estimates by South Korea’s central bank.

The Bank of Korea said yesterday that it believes North Korea’s 2006 gross domestic product declined 1.1 percent from a year earlier, the first downturn since 1999. The BOK, since 1991, has estimated the figures based on data from South Korean intelligence agencies and other research institutes. North Korea does not release economic data.

According to the estimate released yesterday, North Korea’s agriculture and marine industries last year declined 2.6 percent from 2005, when production rose by 5 percent.

“North Korea suffered from a serious flood last year, in stark contrast to 2005 when there was no major flood and farm production was good,” said a BOK official who refused to be named.

Growth in mining production, one of North Korea’s major industries, slowed to 1.9 percent from 3.5 percent in 2005. Manufacturing inched up 0.4 percent, down from 4.9 percent growth in 2005.

Construction sector production showed the biggest downturn at 11.5 percent from a year earlier, compared to 6.1 percent growth in 2005, as road and railway construction slowed, the central bank said.

Using satellite data, the bank estimated North Korea built just 49 kilometers (30.4 miles) of new roads last year, a sharp decline from 310 kilometers built in 2005.

Posted in Agriculture, Forestry, GDP statistics, International trade, Manufacturing, Mining/Minerals, Trade Statistics | Comments Closed

Kim Jong Il Gives On-site Guidance to Hamhung Wood Processing Factory

Sunday, August 12th, 2007

KCNA
8/12/2007

General Secretary Kim Jong Il gave on-site guidance to the Hamhung Wood Processing Factory.

After being briefed on the history of the factory at the room devoted to its history, he walked round the house of culture and other cultural facilities. He noted with appreciation that the workers of the factory are fully enjoying diverse cultural life at the modern house of culture and having brisk mass sports activities.

Then he looked round the computer control room, the sawing shop, the processing shop, the finishing shop and other production processes one by one to acquaint himself in detail with the technological updating and production there.

He highly appreciated the feats performed by the officials, workers and technicians of the factory and extended warm regards to all its employees, noting that the appearance of the factory has undergone a radical change and the production sharply gone up in a few years as they have dynamically pushed forward the technological updating through their concerted efforts.

It is the main thrust of the on-going general march to speed up the technological updating for the modernization of economy and give fullest play to its potential, while directing primary efforts to rapidly improving the standard of people’s living, he said, underscoring the need for all the factories and enterprises to boldly carry out this work.

He set forth tasks to be implemented by the factory, saying that what is important for the production of wooden products is to improve their quality and increase their variety.

He was accompanied by Hong Song Nam, chief secretary of the South Hamgyong Provincial Committee of the WPK, Kim Ki Nam, secretary of the Central Committee of the WPK, and Pak Nam Gi, department director of the C.C., WPK. Nam Gi, department director of the C.C., WPK.

Posted in Agriculture, Forestry, Manufacturing | Comments Closed

Kim Jong Il Gives On-Site Guidance to Hungnam Fertilizer Complex

Saturday, August 11th, 2007

KCNA
8/11/2007

General Secretary Kim Jong Il gave on-the-spot guidance to the Hungnam Fertilizer Complex.

He was accompanied by Chief Secretary of the South Hamgyong Provincial Committee of the WPK Hong Song Nam and Secretary Kim Ki Nam and Department Director Pak Nam Gi of the WPK Central Committee.

He first went round the revolutionary museum.

Noting that the complex turned into the nation’s dependable big fertilizer producer under the wise leadership of President Kim Il Sung, he said that the undying revolutionary feats of the President would always remain shining in the history of the country.

Then he looked round the newly reconstructed fertilizer production processes to learn about the construction and production there.

Watching the gigantic fertilizer production processes which demonstrate the might of the Juche-based industry, he expressed great satisfaction over the fact that the complex has successfully built a great structure in the spirit of self-reliance fully meeting the need of the new century.

It is a great success that the complex has completed the difficult and complicated reconstruction project requiring high technology in a brief span of time by its own efforts and technology, he said, highly appreciating the feats performed by the officials, workers and technicians of the complex who have devoted all their wisdom and energies to the project and the scientists, technicians and workers of the State Academy of Sciences, the Hamhung Branch of the academy, Hamhung University of Chemical Engineering, the Ryongsong Machine Complex and other units who helped them in the project with an attitude befitting master.

Noting that the successful completion of the updating of the fertilizer production processes, a product of the spirit of self-reliance, is one more demonstration of the might of the nation’s rapidly developing science and technology, he stressed that there is nothing impossible when they strive hard to introduce advanced science and technology in a bold and positive manner.

Now that the fertilizer production processes have been updated, it is necessary, accordingly, to improve the management of equipment and technical control and raise the level of technical skills of the workers and thus keep the fertilizer production going at a high rate, he stressed.

He set forth tasks to be fulfilled by the complex, saying that the complex has a very important duty to fulfill for the purpose of developing the nation’s agriculture.

In order to solve the problem of food, a key point in the issue of clothing, food and housing, it is necessary to actively develop agriculture and increase the supply of fertilizers for successful farming, he noted, underscoring the need to focus efforts on the fertilizer production, always bearing in mind the President’s proposition that “Fertilizer immediately means rice and rice, socialism.”

He pointed out that in order to boost the production and supply of efficacious fertilizers it is necessary to keep energetically pushing ahead with the technological updating to furnish all the production processes of the complex with latest equipment and intensify the drive to introduce advanced technology.

He underlined the need for the complex to establish a fertilizer production system depending on locally-available raw and other materials and conduct strenuous scientific researches to steadily cut down the production cost for the purpose of strengthening the Juche character of the chemical fertilizer industry.

He had a photo session with the labor innovators of the complex.

At the end of his on-site guidance, he together with the innovators who have performed feats in the reconstruction project appreciated a performance given by the employees art group of the complex at the Workers’ House of Culture.

Posted in Agriculture, Light Industry, Manufacturing | Comments Closed

Pyonghwa Motors Producing Trucks in the DPRK

Friday, August 3rd, 2007

Institute for Far East Studies (IFES)
8/3/2007

Pyongwha Motors, the South Korean company producing automobiles in North Korea will expand into truck manufacturing from this year. According to an official from the company, the manufacturer, currently producing six models, plans to begin truck production within the year, and is working together with Hwacheon Motors and other enterprises in the Chinese city of Shenyang.

Pyongwha Motors currently manufactures three models in the ‘Bukkuki’ (Cuckoo) SUV series, a pickup truck, the mid-size sedan ‘Wuiparam II’ (Whistle II), and the minibus ‘Samchunri’ (Throughout Korea). As of yet, the company has not decided what type of truck it will produce. The company’s truck production is a result of demand in North Korea. Farms, organizations, factories and other consumers have been asking Pyongwha Motors to “produce a truck that will allow a little bit more to be loaded” onboard, and the company has been listening.

An official from the company stated, “if truck production gets underway, last year’s production of 600 to 700 vehicles will be surpassed and more than 1000 vehicles [will be produced] this year,” and went on to explain that the next step is to decide on an exact model through cooperation between North Korean and Chinese counterparts.

Pyongwha Motors, operated through an equity joint venture between South Korea’s Pyongwha Motors Group and North Korea’s Chosun People’s Leisure Group, first produced an automobile based on a model of an Italian Fiat, and in its second stage of operations, produced SUVs and pickup trucks. Today, the company is in its third stage of operations, producing minibuses, trucks, and mid-size sedans.

Posted in Automobiles, Manufacturing, Pyonghwa Motors, Transportation | Comments Closed

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