Construction of expanded automobile industrial park to kick off in late April

April 14, 2016 | 11:23

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The Quang Nam People’s Committee will hold the ground-breaking ceremony of the second phase of the 2,000-hectare automobile industrial park (IP) located in Chu Lai Open Economic Zone on April 23.

The management authority of Chu Lai Open Economic Zone (EZ) is currently concentrating on constructing resettlement areas, roads, as well as other infrastructure in the zone. Besides, the authority is dredging Ky Ha port to provide 20,000DWT ships access to the automobile IP.

The automobile IP’s construction is kicked off when both foreign and domestic automobile manufacturers have plans to expand their operations, as well as invest in Chu Lai Open EZ.

Notably, Vietnamese car manufacturer Truong Hai Auto Corporation (Thaco) and Japan’s Mazda Company signed a co-operative deal to manufacture and assemble 100,000 Mazda vehicles per year, with an annual capacity of 50,000 vehicles in the first phase. The project’s construction is expected to start in the third quarter of 2016.

Previously, preparing for the fresh co-operative project between Thaco and Mazda, a handful of Mazda’s satellite businesses have set up shop in the Chu Lai-Truong Hai complex. In mid-February, 46 suppliers of Mazda came the complex to seek investment opportunities.

Thaco invested $700 million to construct the Chu Lai-Truong Hai complex, which started operation in 2015 after 12 years of construction. The complex currently has six automobile assembly factories, nine spare part manufacturing factories, and six supporting areas.

On February 15, Thaco put into operation a $6.75 million facility manufacturing trailers and other special heavy vehicles at the Chu Lai-Truong Hai complex. With a designed capacity of 5,000 products per year, the facility is expected to churn out 3,000 vehicles and 1,200 trailers in 2016.

Meanwhile, South Korea’s Hyundai Group is proposing the management authority to develop its automobile manufacturing factory in the EZ.

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