MercoPress. South Atlantic News Agency

Paraguay and South Korean finalize details for joint electric car parts production to start in 2022

“We believe that the automotive industry in Paraguay can contribute to national growth and development,” said Ambassador In Shik Woo.

Paraguay's Minister of Industry and Commerce (MIC) Luis Alberto Castiglioni Friday discussed with South Korean Ambassador To Asunción In Shik Woo the establishment of an Auto Parts Technology Center for electric cars in the South American country, which is due to commence in 2022 and last for about five years, it was reported.

The Korea Institute of Automotive Technology (Katech) has recently signed a memorandum of understanding with Paraguay's Ministry of Industry and Commerce for the establishment and operation of the Paraguayan Auto Parts Technology Center, with a view to the supply and operation of commercial electric vehicles.

This agreement will allow the establishment of an Auto Parts Technology Center in Paraguay, the first of its kind in Latin America with the support of the Korea Institute of Automotive Technology, with international standards for the training of qualified labor according to the high demands of the market.

The agreement contemplates in the future the supply and operation component of commercial electric vehicles, with its respective branch of professional training for the required technical services. A master plan will be drawn up for the development of the Paraguayan auto parts industry, in collaboration with experts from both countries.

Korea is expected to supply the know-how of years of developing such vehicles as well as the financing, while Paraguay must, in return, allocate property and human resources for the undertaking and support the Asian experts assigned to the task.

“We believe that the automotive industry in Paraguay can contribute to national growth and development, and also that this industry can help Paraguay to insert itself in the international market. We hope that this type of project can contribute to strengthening ties between Korea and Paraguay. Next year we are celebrating 60 years of the establishment of diplomatic relations, which will be the beginning of another 60 years,” said Ambassador In Shik Woo.

The project is expected to boost Paraguay's automotive industry and allow it to achieve greater competitiveness not only within Mercosur, but also globally and with the potential to export to the world.

Vice Minister Pedro Mancuello emphasized that the Republic of Korea, through its Ministry of Commerce, Industry and Energy of Korea, and the Korea Institute of Automotive Technology (KATECH), has been supporting Paraguay in a sustained and determined way to develop capacities of technology that help increase the competitiveness of the local automotive industry.

He also stated that Paraguay aspires to be a leader in the region in the sector and, within that line, public passenger transport. “Traditional public transport can be changed and take a leap in quality, having an electric public transport. There is also a very interesting line of work, which are the small units of 1,000, 1,500 and 2,000 kilos of electric freight transport,” emphasized the deputy minister.

“We are working to have a strategic objective that points towards electric transportation and to integrate ourselves into regional value chains. To be able to be part of the region and the world through the recently signed automotive agreements, in which we have special considerations for Paraguay, not only in conventional transport, but also in electric transport,” he went on.