The central city of Da Nang has granted a new investment licence to a factory for aircraft components of Universal Alloy Corporation, worth US$170 million.

The city’s Investment Promotion Agency (IPA) said the licence would be handed over to the US investor at an investment event – the Spring Dialogue – in the city on March 1.

It said the project will be built on 1.67ha at the city’s Hi-Tech Park, 20km west of city centre, with two phases of investment in 2019-26. The project aims to export aircraft components to North America and Europe worth an estimated $25 million in 2021 and $82 million in 2022, before aiming for more than $180 million of exports on an ongoing annual basis by 2026, IPA said.

According to IPA, Universal Alloy Corporation (UAC) is a leading global manufacturer of aircraft components for aerospace companies such as Boeing, Airbus, Embraer, Bombardier and their associated supply chains.

UAC’s headquarters are located outside of Atlanta in the US. UAC operates facilities in North America, Europe and soon in Asia with the facility to be built in Da Nang.

UAC Viet Nam will initially supply fuselage components for Boeing’s 787, 777 and 737 aircrafts; and engine elements for Rolls Royce in the Da Nang-based plant for export to North America, the EU and Malaysia.

UAC will machine, surface treat and assemble parts from aluminum extrusions manufactured on the site and imported aluminum plate, employing between 650 to 1,200 employees at the Hi-Tech Park. In the second phase of investment, UAC’s manufacturing will require highly skilled employees in aerospace as well as local industrial suppliers and logistics and manpower of 2,000 people.— VNS