Toyota subsidiary to set up another airbag plant in northern Vietnam
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Japanese auto parts maker Toyoda Gosei plans to build another airbag plant in Thai Binh Province at a cost of $16.8 million next year.
Work on the plant will begin in May 2020. When completed in October 2021 it will help increase the company’s capacity in Vietnam to 25 million airbags annually, Toyoda Gosei said in a statement on Wednesday. It will employ 700 workers initially, increasing to 2,000 by the end of 2023.
Toyoda Gosei, a subsidiary of Toyota Motor Corp., built its first plant in Vietnam in Hai Phong City in 2004. Last July it opened a $24.6-million second plant at the Tien Hai Industrial Park in Thai Binh Province.
It plans to increase the capacity of the Hai Phong factory to meet increasing orders. Airbags produced in Vietnam are exported mainly to Japan but also to other markets such as ASEAN and North America.
Established in 1949, Toyoda Gosei has 67 facilities and factories in 17 countries around the world.
Questions & Answers
Q.What is the total investment Toyoda Gosei is making in this new airbag plant?
What is the total investment Toyoda Gosei is making in this new airbag plant?
Toyoda Gosei plans to invest $16.8 million in the construction of its new airbag plant in Thai Binh Province. This investment contributes to increasing their overall production capacity in Vietnam.
Q.When is the new plant expected to begin operations and what will be its production capacity?
When is the new plant expected to begin operations and what will be its production capacity?
Work on the plant is scheduled to begin in May 2020 and it is expected to be completed in October 2021. Once operational, it will help increase the company's total capacity in Vietnam to 25 million airbags annually.
Q.How many jobs will the new airbag plant create, and over what timescale?
How many jobs will the new airbag plant create, and over what timescale?
The new plant will initially employ 700 workers. This number is projected to increase significantly, reaching a total of 2,000 employees by the end of 2023, boosting local employment.
Q.Where are the airbags manufactured in Vietnam primarily exported?
Where are the airbags manufactured in Vietnam primarily exported?
Airbags produced at Toyoda Gosei's Vietnamese facilities are primarily exported to Japan. They also supply other international markets, including countries within ASEAN and North America.
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