The Busan-Jinhae Free Economic Zone Authority has signed a memorandum of understanding with Visteon who will build a plant at the Busan Science & Industrial Park located within the Busan-Jinhae FEZ.

The project calls for an estimated budget of $US16m by 2009, Busan-Jinhae FEZ Authority officials told the Korea Hera;d. Visteon said it will hire over 170 Korean workers.

The company has been supplying instrument panels, door trims and floor consoles to local car makers, including Renault Samsung Motors and Ssangyong Motor, via Visteon Interiors Korea since 1999. The US firm has a 51% stake in the Korean unit.

The Busan-Jinhae FEZ Authority officials said they hope a synergy effect would be created with existing industrial enclaves in adjoining areas, such as Hyundai Motor in Ulsan and Renault Samsung Motors in Busan.