REDMOND – Bend’s loss is Redmond’s gain.

South Korea-based tractor manufacturer Tong Yang Moolsan Co. Ltd., or TYM, is scheduled to open its new Western U.S. distribution center in Redmond on Tuesday. Company officials had originally considered Bend as a potential site for the facility but ruled out the option due to high property prices and a lack of industrial land.

The 20,000-square-foot building, which includes 3,200 square feet of office space, is the first American TYM facility built by the company.

”I think this tells Central Oregon that there is a place for industry here,” said Dale Owen, vice president of TYM-USA Inc. ”It’s not just for resort destinations. Industries want to come here.”

The facility will serve both storage and minor assembly purposes. The building has four assembly bays, where Owen’s crew of five workers will add steering wheels and other accessories to tractors before shipping the finished products to dealers in 11 states.

Owen said he is looking to add as many as eight more workers to operate the new facility at full capacity. He estimated that the facility can ship out up to 24 tractors a day and is expected to process 1,000 tractors annually.

TYM builds compact tractors ranging from 23 to 70 horsepower. The United States is the world’s largest market for compact tractors, making up 80 percent of that market, according to Owen. Since so much of TYMs business is in the United States, Owen said it is quite possible that the Korean company may establish full-scale manufacturing plants in the country in the near future.

It absolutely makes sense to assemble here, he said, referring to the cost savings of having manufacturing on the same continent as the majority of sales. (TYM Chairman H.Y. Kim) was very pleased with (Central Oregon), and theres no reason to think they wouldnt expand. And if they do, we have a good shot.

If that possibility comes to fruition, it likely wont happen in Bend. The lack of available industrial land and high property prices are factors driving many manufacturers out of town. Madras-based Bright Wood Corp. recently announced it is vacating its Bend facility.

Other Central Oregon communities, like Redmond and Prineville, may be able to reap the rewards by keeping those manufacturers in the region.

We offer an alternative to companies that cant find the environment in Bend where they can be successful, said Redmond Economic Development Manager Bud Prince, who worked closely with TYM officials to bring the company to the city from Tigard in 2002. They can still stay in the regions business climate because communities (in Central Oregon) arent that far from each other.

Roger Lee, executive director of Economic Development for Central Oregon, said he is happy that the industry is staying in the region, but added he would prefer if Bend can maintain a manufacturing sector as well.

I think a lot of leaders in other communities are saying, Keep doing what youre doing, were benefiting, Lee said. But we do want a strong Bend with a diversified economy. So its an ongoing concern that existing companies cant expand their operations while there arent many opportunities for foreign investments.

TYMs Owen said he initially looked at Bend as a possibility, but high prices and the lack of property options led to his choosing of the facilitys current location.

Bend just isnt industry-friendly, he said. Redmond and Prineville are much more industry-friendly.

But Redmond still has its challenges. Owen said the current shipping route from South Korea to Bend simply isnt convenient.

We would really like to see a container yard locally, he said. I think itll be good for everyone. Right now, our crates arrive in Seattle and get railed to Portland, where they dont have enough trucks. And the trains dont stop in Redmond because there is no equipment to unload the containers.

Regardless, Owen said TYM officials are very happy with the Central Oregon locale. Five company officials, including Chairman Kim, visited the region earlier this week.

Lee said TYMs presence is a crucial step to Central Oregons future.

We do have some foreign-owned companies in Central Oregon, but mostly, theyre more small-scale, he said. TYM is a good-sized company. If they succeed, there could certainly be more opportunities for additional foreign investments. This is good exposure in that part of the world.

Prince said the deal isnt bad for Redmonds civic pride, either.

The fact that tractors will be distributed to 11 states and carry the name of Redmond, Oregon, is certainly a great promotion for our community, he said. Anytime a company not only locates here but also invests tens of hundreds of dollars in a facility shows others that they want to be here. Its a good signal to people interested in the area, that this is obviously a good place to do business.

Owen said there are already plans to further expand the facility by 16,000 square feet later this year. The company currently operates out of a 6,000-square-foot warehouse south of Redmond.