South Korean firm ESMO has just broken ground on ESMO VINA, its first wiring harness factory in Vietnam, in Gia Phu Industrial Zone in Ninh Binh province.
The project, spanning an area of 63,500 square meters and costing about VND700 billion (US$30.5 million), is expected to generate some 2,000 jobs for local people.
With the construction of the factory, ESMO aims to raise its production capacity to meet the demands of new orders, while enhancing its competitiveness through the systematic production of specialized parts for hybrid and electric vehicles.
The factory would focus on wiring harness, the company’s flagship product, with a production volume of about 450,000 items per year.
The product is used in large and small buses as well as Battery Module Harness (battery module system), electric vehicle charger cable, etc to go along with the explosion of hybrid electric vehicles from 2020.
Amid increasing international agreements on emission reduction, auto manufacturers now find it their mission to create products that are environment-friendly.
Hence, the birth and usage of electric and hybrid car are more and more popular, leading to the development of the corresponding parts industry that ESMO is one of the vanguards.
ESMO hopes to foster the economic growth of Ninh Binh province as well as Vietnam and create more jobs for the local people. Hence, the firm can help training the labor force and enhance Vietnamese local competitiveness against worldwide cities, provinces.
The South Korean company is currently operating two manufacturing facilities, GoHyeon and RaeSeo, in Qingdao, China. ESMO also plans to increase the product volume for automakers concentrated in Southeast Asia that are rapidly growing.