Toyoda Gosei Co plans $16.8m investment in new airbag factory in VN
Japanese auto parts maker Toyoda Gosei Co has announced it would invest an additional 1.8 billion yen (US$16.8 million) to build a new airbag factory in Thai Binh Province to increase production capacity in Viet Nam to meet rising global demand.
The project is expected to start construction in May 2020. When being put into operation in October 2021, the new factory will help increase total airbag production in Viet Nam to 25 million units, 1.5 times higher than 2018.
The new factory is expected to employ 700 employees in the province during the opening and increase to 2,000 employees by the end of 2023. In the short term, Toyoda Gosei will increase capacity of the Hai Phong-based factory to meet increasing orders due to stricter vehicle safety system demand around the world.
Airbag products produced in Viet Nam are mainly exported to Japan and partly to other markets such as ASEAN and North America countries.
Currently, Japanese automakers are increasing orders for airbags, compelling Toyoda Gosei to quickly decide to increase operating capacity to meet this demand.
According to its medium-term business plan to 2025, Toyoda Gosei will focus on producing safety equipment for cars, in which the total airbag capacity will reach 100 million units by 2023, an increase of 1.6 times over 2018.
Established in 1949, Toyoda Gosei is a leading manufacturer of car components and parts. It has 67 facilities and factories in 17 countries around the world. — VNS
