Thang Long Industrial Park
Work has started on a new plant in Vietnam that will produce forklift transmissions and axle components for export.
Sumitomo Nacco Materials Handling Vietnam Co Ltd, a joint-venture project between Sumitomo Heavy Industries and Nacco Materials Handling Group, anticipates the plant will generate USD2 million in revenue per year.
The 2.7-hectare plant in Thang Long Industrial Park, Dong Anh District will be operational in seven months. The project will be divided into three phases with a total capital investment of USD60 million.
The second phase will involve making forklift parts and the third phase will concentrate on making the machines.
Takashi Yoneda, director of Sumitomo, says the company decided to invest in Vietnam because of its labour quality, political stability, tax incentives and geographical advantages.