The Killeen Economic Development Corporation during the first quarter of the fiscal year secured a $70 million investment from a South Korean company and met with several prospective industries.
That is according to a report EDC President and CEO Scott Connell will present to City Council members on Tuesday.
In December, EDC officials said in a news release that construction of Dongjin Semichem Texas in Killeen was expected to begin “immediately” after City Council members in November unanimously approved an economic development agreement with the company.
Dongjin Semichem operates 20 plants in Korea, China and Europe, employing over 1,800 people. “As an industry leader in the electronic materials market, the company’s major product lines include display materials, semiconductor materials and renewable energy materials,” according to the release.
“The Lone Star State continues to attract world-class companies because of our dedication to providing businesses the support and resources needed to thrive,” Gov. Greg Abbott said in the release. “As Texas’ semiconductor sector continues to rapidly expand, we are excited to welcome this new advanced technology manufacturing plant to Killeen. This $70 million investment will create many good-paying jobs for Texans and help spur strong economic growth in Central Texas.”
Dongjin plans to build a 91,000-square-foot plant at the Killeen Business Park — its first such facility in the United States.
Production at the plant is scheduled to begin in 2024, according to the release.
“The company will provide patented processing chemicals for the $18 billion Samsung manufacturing facility in Taylor,” the release shows. “The Killeen Business Park was among several sites competing for the company’s $70 million investment but chose Killeen for its available land, competitive incentive package, skilled workforce and proximity to Interstates 14 and 35.”
Dongjin Semichem was founded in 1967. It has about 1,800 employees across the world and about $1 billion in sales. In Killeen, the company plans to offer 17 jobs averaging about $50,000 annually.
Semiconductors, or microchips, are manufactured from pure elements such as silicon or germanium, or from compounds.
“We are excited to embark on a new chapter for our company with the development of our first plant in the United States,” Dongjin executives, Chairman Boo Sup Lee and Vice Chairman Chun Hyuk Lee, said in the release. “We would like to express our appreciation for all the help and support provided by the city of Killeen and KEDC.”
A year ago, Samsung announced it was going to build the massive plant in Taylor, about 58 miles southeast of Killeen.
“The new facility will manufacture products based on advanced process technologies for application in areas such as mobile, 5G, high-performance computing and artificial intelligence,” according to the company’s website. “Samsung remains committed to supporting customers globally by making advanced semiconductor fabrication more accessible and meeting surging demand for leading-edge products.”
Samsung was founded as a trading company in 1938 in South Korea.
Dongjin Semichem “has a long history of working with that company,” Scott Connell has said. Connell is president and CEO of Killeen EDC.
According to the EDC report, officials met with an unidentified property owner about 210 developable acres.
“KEDC also coordinated meeting for company and city staff to discuss development processes,” and in October, officials “met with prospects of a technology supplier to Samsung in Austin.”
Also in the first quarter of the 2022-23 fiscal year, “Oncor’s team visited to discuss their marketing program and Killeen development opportunities,” according to the EDC report.
Other first-quarter activities included ribbon-cuttings at Harrington Industrial Pipes in the Killeen Business Park and Murdoch’s in November.
Active projects include an automotive parts manufacturer with a $16 million capital investment and 58 jobs with annual salaries of about $60,000.
The workshop meeting on Tuesday is scheduled for 5 p.m. at City Hall, 101 N. College St.
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