By Kim Yoo-chul
Staff Reporter
Despite the government’s strong call for foreign direct investment (FDI), many foreign companies have still maintained a ``wait-and-see’’ attitude in South Korea but Watlow seems to be ready to break away from the pack.
``We don’t want to equally compare Singapore with South Korea in business circumstances, however, we want to invest more in South Korea and this is not `lip-service’,’’ Peter Desloge, Chairman of Watlow said in an interview with The Korea Times, Monday. He came here as a part of his regular inspection trip of overseas affiliates.
Headquartered in St. Louis, Missouri, the company is the largest custom designer and manufacturer of electric heaters, controllers, office equipment and temperature sensors around the world.
``As Watlow’s international presence has grown capitalizing on Asia, so has the company’s insight about doing business overseas,’’ he said, adding South Korea is still a ``test-bed’’ for a bigger success in China.
On a question over main barriers to hamper more FDI, the company’s top official said the South Korean government should provide more ``substantial’’ policy packages to shy away from a ``symbolic gesture.’’
``It could be possible to set up a manufacturing facility, here, however, that is a long-term strategy for our company,’’ he said.
``South Korea embraces Samsung Electronics, Hynix Semiconductor and LG Display as the world’s top-level memory-implemented chips and liquid crystal displays and we are strengthening a healthy partnership with them as a parts supplier,’’ according to the official.
In 2006, Watlow opened a new manufacturing plant in Shanghai, China, to reflect its effort to better serve customers that currently have a presence, there. Its Shanghai facility has been manufacturing tubular heaters.
``With China expanding as `factory to the world,’ there’s been an emergence of a Pan-Asian manufacturing network, driven by costs and by companies seeking to leverage competitive advantages, diversify risks by spreading manufacturing across multiple areas in the region, especially into areas such as Singapore,’’ he explained.
Asked about detailed strategies, if any, to increase footsteps in the South Korean market, he said they were open to the possibility of either forming a joint venture or buying a local component maker.
``Since we have been looking at channels to maintain our leadership in Asian market, yes, it’s possible to make an acquisition depending on market situations,’’ the chief executive said.
``Now, we are aiming to nurture the newly-emerging energy-related applications, with an annual $10 million budget solely for the segment,’’ he said, adding that his company saw annual productivity increase 50 percent for the past couple years thanks to continuous sharpening technology.