Japanese electric wire manufacturers shift operation to Vietnam
Japanese wire makers are keen to expand sales elsewhere in Asia as automobile electrification takes off and Japan`s auto parts suppliers shift their own production bases.
Japanese electric wire manufacturers Hitachi Metals and Furukawa Electric are shifting their production and investment into Vietnam as they prepare for growth in Asia’s electric vehicle market, Nikkei Asian Review reported.
Illustrative photo.
|
The company will expand production capacity at its existing plants and build new facilities during the first half of fiscal 2020. It plans to supply EPB wire primarily to Japanese auto-sector manufacturers in Southeast Asia.
It will also open new production facilities at its plant in Hai Duong Province in northern Vietnam and beef up the capacity of existing facilities at its plant in Ayutthaya, north of Bangkok.
EPBs do not require conventional mechanical levers, making it possible to more effectively use space around the driver’s seat. Hitachi Metals is rushing to expand local processing in anticipation of growing demand for EPB wire in Asia.
In Vietnam, Furukawa Electric will also invest about US$32 million to quadruple its existing local plant’s capacity to produce aluminum wire for automobiles. A new building will go online in September 2020.
Furukawa Electric intends to cash in on increasing demand due to greater use of aluminum in EVs to make them lighter.
Many Asian countries are promoting EVs under government initiatives. The Chinese government is promoting the spread of ecologically friendly cars like EVs the help address environmental problems due to auto emissions.
The Thai government is also pursuing "Thailand 4.0," a policy to upgrade the nation’s industries. Next-generation automobiles such as EVs have a prominent place in the place.
There are also moves to establish charging infrastructure for EVs in Asia, which is also encouraging Japan's electric wire makers to expand their operations in the region.
In Vietnam, for example, conglomerate Vingroup and state-owned oil company PetroVietnam are separately building charging stations.
18:03, 2025/02/22
Vietnam attracts South Korean tech investment at SEMICON Korea 2025
The event provided a platform for Vietnam to showcase its semiconductor potential and reaffirm its commitment to developing high-tech industries and strengthening international cooperation.
16:46, 2025/02/20
Swedish group plans US$1 billion investment in Binh Dinh recycling plant
By creating a large number of jobs and promoting a green economy, the initiative is important in establishing Vietnam as a global hub for the circular textile sector.
10:52, 2025/02/13
Samsung plans to invest in AI, semiconductors in Vietnam
Vietnam will continue improving its investment environment and driving strategic breakthroughs in order to usher in a new era of economic development.
17:20, 2025/02/07
Vietnam's data center construction costs among the lowest in Asia Pacific
The country has a lot of potential to become one of the most important data markets in the region.
21:05, 2025/02/03
Bright prospects for FDI inflows into Vietnam in 2025
Market size, growth potential, low labor costs, and stable political and social conditions continue to be Vietnam’s selling points in attracting foreign investors.
10:57, 2025/01/30
Foreign companies confirm investment expansion in Vietnam in 2025
Some foreign firms are optimistic about Vietnam's economic prospects in 2025 and plan to expand investment, focusing on sustainability across sectors.
- PM invites Skoda to manufacture electric vehicles in Vietnam
- US Berggruen Holdings to help Vietnam set up investment funds
- Vietnam releases Esports White Book 2022-2023
- Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
- Better links with FDI firms to support Hanoi businesses
- Vietnam calls for more US investment in innovation, hi-tech