Andong Turns Forests into Industry... Attracts 38 Billion Won in Future Investment

Establishment of Wood Chip Plant and Resource Collection Center

Full-Scale Launch of Northern Forest Bio Belt

1.5 Trillion Won Investment by 2030

Andong City has successfully attracted an investment of 38 billion won for the eco-friendly forest bio industry, embarking on the establishment of an industrial foundation aimed at creating high added value from forest resources and achieving carbon neutrality.

Andong City Attracts 38 Billion Won in Forest Bio Investment, Launching 'Wood Resource Recycling Hub'
Photo by Andong City

On July 6, Andong City announced that it had signed a memorandum of understanding (MOU) for investment with Gyeongsangbuk-do Province, LX International Co., Ltd., and Gyeongbuk Forest Resource Collection Center Co., Ltd. at the Gyeongbuk Provincial Office to establish a forest resource collection center and construct a new wood chip manufacturing plant.

According to the agreement, Gyeongbuk Forest Resource Collection Center Co., Ltd., a subsidiary of LX International, will invest 38 billion won in Andong to build an eco-friendly wood chip manufacturing facility and a forest resource collection center. Once the project is complete, 42 local talents are expected to be newly hired.

This project is significant in that it establishes a resource circulation system to recycle forest disaster by-products, such as trees damaged by wildfires and pine wilt disease, into eco-friendly bioenergy sources, which have been difficult to process until now.

Through this initiative, Andong City expects not only to reduce the cost of processing forest by-products, but also to achieve various effects including reducing carbon emissions, expanding renewable energy, and strengthening the competitiveness of the local forestry industry.

In particular, the Gyeongbuk Forest Resource Collection Center plans to develop Andong into a key base for the distribution and processing of forest resources. By 2030, the project will be expanded to the northeastern region, including Cheongsong, Yeongdeok, Uljin, and Bonghwa, with the goal of establishing a metropolitan forest bio industry belt worth a total of 150 billion won.

This is expected to connect the northern region of Gyeongsangbuk-do, which possesses abundant forest resources, into a single forest industry zone, thereby creating a new industrial ecosystem that integrates the collection, processing, and distribution of wood resources.

Lee Cheol-woo, Governor of Gyeongbuk Province (fifth from left), Kwon Ki-chang, Mayor of Andong (fourth from left), and Yang Geum-hee, Vice Governor of Gyeongbuk Province (second from left), are promoting the establishment of a Woodchip Factory and Forest Resource Collection Center by LX International's subsidiary and a 150 billion KRW metropolitan forest industry belt by 2030.
[Photo by Andong City]

Kwon Ki-chang, Mayor of Andong, stated, "I am grateful to LX International for believing in the potential growth of Andong’s abundant forest resources and making this investment. The city will provide full administrative support to ensure that forest resources become a new growth engine and source of quality jobs for the region."

This investment is especially meaningful as it marks the starting point for an eco-friendly industrial transition that goes beyond simply building a new factory, by turning forest disaster by-products into future energy resources. If the unique characteristics of the vast forest area in northern Gyeongsangbuk-do are linked to industrial competitiveness, it is expected to become a new growth model that can simultaneously address the dual challenges of achieving carbon neutrality and revitalizing the local economy.

This content was produced with the assistance of AI translation services.