A pioneer in automation, Nexen Tech Corporation Limited Company has realised its expansion strategy to Southeast Asia by developing a new facility in Gia Phu Industrial Complex (Ninh Binh) which is 140 kilometres from Haiphong Port.
Nexen Tech signed a memorandum of understanding with Hoang Dan Investment and Construction Single Member Limited Company on land leasing for the construction project.
The signing ceremony was attended by Nguyen Cao Son, director of the Ninh Binh Department of Planning and Investment, Lee Hyun Chul, vice chairman of Nexen Tech, and Nguyen Van Dan, director of Hoang Dan.
The facility will focus on manufacturing wiring harness—the company’s flagship product with a production volume of about 450,000 products a year—used in large and small buses as well as battery module harness (battery module system) and electric vehicle charger cables, among others, to prepare for a forecast boom in hybrid electric vehicles from 2020.
The company also plans to increase the production volume for automakers in Southeast Asia who are rapidly growing, and then expand outside of Asia with the hopes of reaching the global market.
Nexen Tech is currently operating two manufacturing facilities in Qingdao (China), named GoHyeon and RaeSeo. The third plant will be built with a total area of 63,5000sq.m and a construction area of 45,000sq.m. After receiving approval for the environmental assessment report in June, the company will hold the ground-breaking ceremony in July.
Kim Jeong Hoon, CEO of Nexen Tech, also attended the Vietnam-Korea Business Forum during the official visit of Korean President Moon Jae-in to strengthen the partnership between the two countries and encourage Korean enterprises operating in Vietnam.
Nexen Tech is showing very positive moves in opening up the Southeast Asian market to access new growth drivers.
|Kim Jeong Hoon, CEO of Nexen Tech|
Earlier this March, Nexen Tech partnered up with Volex from the UK, which is expanding its business network with wiring harness, including the exclusive supply of Tesla Model 3 rechargeable cables expected to be launched in 2018.
Thus, Nexen Tech’s products have the potential to be used in electric vehicles developed by Tesla or equipment from Dyson UK.
“This new plant will be our next step in entering Southeast Asia. We will build and operate this plant with a long-term vision through competitive products,” said Hoon.