Japanese photogravure printing, laminating and coating firm Nakamoto Packs Co. will begin producing automotive and household materials in Vietnam early next year, aiming to join the global supply chain for the automobile industry and increase its overseas sales.
The Osaka-based company said Tuesday that it established Nakamoto Packs Vietnam Co., a wholly-owned subsidiary, in Thua Thien Hue Province, central Vietnam, on May 28 with a capital of $4 million.
Beginning in March 2021, the subsidiary will produce automotive materials, including those for car interiors, as well as household goods such as Japanese-style futon bedding and vacuum storage bags for bedding at its factory in Thua Thien Hue Province, Takuji Yoshida, a spokesman for Nakamoto Packs, told NNA.
The Vietnamese unit will ship car materials globally and export almost all bedding to Japan, he added. The company currently manufactures these products, mostly in China.
Yoshida cited additional U.S. tariffs imposed on Chinese products in their trade dispute as one of the reasons for a partial production shift in automotive materials from China to Vietnam.
The company aims to increase its overseas sales, which stands at roughly 3 billion yen ($28 million), or about 10 percent of the group’s entire sales totaling about 34 billion yen, to 10 billion yen, Yoshida said.
Nakamoto Packs had initially planned to establish the subsidiary in March 2020 and begin operations in December, but the schedule was delayed due to the COVID-19 pandemic.