Bosch Group will spend 200 billion won ($178.7 million) on facility expansion in South Korea by next year and hire 300 workers, the head of the German auto part manufacturer’s local unit said Tuesday.

Hermann Kaesse, president of Robert Bosch Korea Ltd., told reporters that the planned spending is based on the belief that the South Korean car industry will further develop.

Bosch Group has Korean units such as Robert Bosch Korea, Bosch Electrical Drives Co., Bosch Rexroth Korea Ltd., and ETAS Korea Co., along with joint ventures including Doowon Precision Industry Co.

The German group’s Korean arms sell auto parts, industrial equipment, security systems and other industrial and home appliances. They racked up a combined 2.5 trillion won in sales last year, up 14 percent from a year earlier.

Kaesse said Bosch companies in South Korea will extend their business territory and focus more on developing an Internet-based industrial system.

He said the German group sold its entire stake in KEFICO Corp., a 50-50 joint venture with Hyundai Motor Co. last month as the South Korean automaker wanted to solely run the company.

Despite the end of the partnership, Bosch will continue to supply auto parts to Hyundai, noted Kaesse.

The German manufacturer will hire 300 more workers by next year for its new business aimed to develop direct gasoline injection technology, said Kaesse. Key components for the direct gasoline injection system will be produced at its factory in Daejeon, some 164 kilometers south of Seoul, he added. (Yonhap News)