Sumitomo kicks off work on new plant

Sumitomo Nacco Materials Handling Vietnam Co Ltd has started work on a new plant to produce transmissions and axle components for forklift trucks for export.

Total investment will be about 18 million USD.

The plant is scheduled to be operational in seven months and hopes to earn 2 million USD in revenue each year.

Covering an area of about 2.7 ha in Thang Long Industrial Park , Dong Anh District, the project will be divided into three phases with the total investment capital of 60 million USD.

The second phase will involve making forklift parts and the third phase will concentrate on making the machines.

Sumitomo decided to invest in Vietnam because of the country’s labour quality, political stability, tax incentives and geographical advantages, said the company’s director, Takashi Yoneda.

The Vietnam plant follows others in the Philippines and China .

The operation is a joint venture between the Japanese Sumitomo Heavy Industries (Japanese company) and Nacco Materials Handling Group Inc of the United States.

Source: VNA