Japan's Mitsubishi Heavy Industries to open plant in Vietnam
TOKYO — Japan's Mitsubishi Heavy Industries said Tuesday that it aimed to be the world's first manufacturer to open an aircraft-related production plant in Vietnam with a new facility due to open next year.
The production plant, which is due to open in Hanoi in January, will employ up to about 200 people when production picks up assembling flaps for the Boeing 737, a company statement said.
It said the move was in response to growing price competition, praising Vietnam's "diligent labour force, robust economy, stable public security and the presence of overseas transport routes."
Mitsubishi Heavy Industries said it would be "the first manufacturer in the world to locate its aircraft-related production facility in Vietnam."
The Japanese group is looking to shift some of its assembly operations overseas and focus its domestic facilities on high value-added work.
Mitsubishi also manufactures wings for Boeing's next-generation 7E7 Dreamliner jet and is developing what it hopes will be the first passenger jet to be built in Japan.
The announcement coincided with a visit to Japan by Vietnamese President Nguyen Minh Triet, whose country is enjoying rapid economic growth and luring a growing number of Japanese companies to set up production plants there.
Japan is a major market for Boeing, with Japanese carriers buying planes almost exclusively from the US aerospace giant.
Agence France Presse - November 27, 2007.
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