US’s Key Tronic and UAC to invest combined US$240 million in central Vietnam
Key Tronic would invest in manufacturing facility worth US$70 million to produce 100 million car lights for export, while Universal Alloy Corporation Asia Pte (UAC Group) a US$170 million factory manufacturing aircraft components and parts.
US-based Key Tronic Corporation and UAC group are expected to invest a combined of US$240 million in the central coastal city of Da Nang.
Electronic manufacturing services (EMS) Key Tronic Corporation on December 27 signed a letter of intent to lease a new 86,000 square-foot facility in Hoa Khanh industrial park, stated the company in a statement.
The new manufacturing facility worth US$70 million is expected to be operational by July 2019, which is designed to have capacity production of 100 million car lights per year for export.
“We expect that commencing operations in Vietnam will significantly augment our Asian footprint and reduce production costs,” said Craig Gates, president and CEO of Key Tronic. “By further diversifying our global manufacturing, we also believe it provides an additional hedge against uncertainty in a lingering or future trade war with China.”
Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico and China, the company stated.
Meanwhile, UAC has been granted a project certificate for the US$170 million factory by the Da Nang government to manufacture aircraft components and parts at Da Nang ‘s high-tech park.
When operational, the factory will produce 4,000 of five million parts used in all types of aircraft to be exported to North America and EU markets.
This project aims at exports of US$25 million by 2021, US$85 million a year later and US$180 million annually from 2026 onwards.
UAC plans to recruit 1,200 highly skilled workers of mechanics, electricity and automation. It will also hire 2,000 people to develop supporting industrial production chains.
UAC Group is a leading global manufacturer of aircraft components, often producing these products under long-term supply contracts for Boeing and Airbus.
Vietnam opened its first airplane parts factory, invested in by South Korean conglomerate Hanwha Group, in December last year. The factory, Hanwha Aero Engines, located in the capital city’s Hoa Lac Hi-Tech Park, began making aircraft engine components for export in January.
Source: hanoitimes.vn
