Among the incentives snagged by the company: $10,000 for every employee who buys a home in Cedar Park
A South Korean company that is a supplier to Samsung Electronics Co. Ltd. said its new U.S. headquarters in a suburb northwest of Austin is part of an ongoing effort to serve customers not only in the semiconductor industry but other sectors as well.
Hanyang Eng USA Inc. – a subsidiary of Hanyang ENG Co. Ltd. – on Oct. 26 was unanimously approved for up to $705,000 in incentives to aid the company in moving into Building 6 at the Scottsdale Crossing Technology Center in Cedar Park. The company was previously approved for incentives for the project, which will be at 1635 Scottsdale Road, by the Cedar Park Economic Development Type A board.
The 41-year-old company has about 1,100 employees worldwide, with locations in South Korea, China, Vietnam and Singapore. They provide piping to move chemicals in the production of semiconductors and are listed as a supplier on Samsung on the chipmaker’s website. Samsung has large factory in Austin and is building an even bigger one in Taylor, a suburb north of Austin, at the other end of Williamson County.
Officials previously said Hanyang expects to grow along with Samsung, but also is aiming to expand into aerospace and environmental and green energy sectors. Executives have a purchase-and-sale agreement for the site in Scottsdale Crossing contingent on the incentives. That’s adjacent to rocket maker Firefly Aerospace Inc., whom they are hoping to partner with. They also plan to have roughly 3,000 square feet of clean room space at the site.
The Hanyang negotiations were a direct result of efforts by the Williamson County Economic Development Partnership to bring South Korean businesses to the Austin area. Economic development leaders met with the company during a recent trip there, and then met Hanyang Eng’s U.S.-based team in Austin, where it lists its U.S. headquarters at 13915 N. MoPac Expressway.
Senior Marketing Manager Jee Seon Kim said in a statement that they “are grateful for the dedication and prompt support provided by the City of Cedar Park Economic Development Corp. in building a strong partnership.” They also said they are committed to contributing to the local community and participate in volunteer opportunities in the city.
The Council unanimously approved an agreement – codenamed Project Engineering in economic development discussions – to provide $450,000 in incentives. Although, Council documents note that the package could be even bigger.
The company could receive $250,000 if the company purchases the building at 1631 Scottsdale Crossing by Dec. 31, 2023; $100,000 if they employ no less than 25 employees with an average salary of $90,000 a year by Dec. 31, 2024; $100,000 for for employing a total of 50 employees, with an average salary of $90,000 by Dec. 31, 2025; $10,000, or up to $250,000, for every employee that purchases a home in Cedar Park; and a $5,000 membership to the Cedar Park Chamber of Commerce, according to the documents.
It marks the first wave of companies within Samsung’s supply chain hitting Cedar Park, which is about 20 miles northwest of downtown Austin and had a population of 77,642 in 2022, according to the U.S. Census Bureau estimates. The city is home to several fast-growing companies, including Firefly and electric vehicle trucking company Hyliion Holdings Corp. Other recent additions include Israeli educational technology company Compedia USA Inc. and startup accelerator Plug and Play Tech Center.
Officials have said that hundreds of companies could flood the area to help support the 6 million-square-foot Samsung facility in Taylor. Other companies in the Samsung supply chain that are expanding in Central Texas include LS Electric Co. Ltd., which has purchased a big building in Bastrop, and KoMiCo Technology Inc., a semiconductor equipment parts company that plans to invest at least $30 million in an existing Round Rock facility, and Schunk Xycarb Technology Inc., which is building a 140,000-square-foot site in Georgetown.
“We feel this is the first domino to fall from a lot of the Korean companies that we met with,” Cedar Park director of economic development Ben White said during the Oct. 26 meeting. “Hanyang has a very popular name, very prestigious name in South Korea. When this hits the news, it’s going to create a lot of excitement for Cedar Park.”
White, who will be leaving the city next month to take a similar position in Taylor, said the project meets many of the Cedar Park City Council’s goals for economic vitality, including the fact that electronic computing manufacturing and being in the Samsung supply chain are part of their strategic plan.
“We weren’t going after the big fabs, but we’re going after the folks that would help supply those fabs and create high-quality jobs for Cedar Park,” he said.
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