Hanwha Techwin’s security business group held a ceremony for a newly established subsidiary in Vietnam, with a $100m investment to expand its global security business.
Several locations were considered for the new subsidiary in Vietnam. After conducting market research, Bac Ninh province, lying about 35 km North East of Hanoi, was chosen as the final location as it is able to offer significant benefits in respect of parts supply, logistics and manpower.
A 60,000m² site will be developed as a base to produce Hanwha Techwin security products, including cameras and recording devices. Construction is due to be completed by December 2017, with production line set-up and test production targeted for the first half of 2018, and mass production commencing in the second half of 2018.
The investment was successfully accelerated due to the Vietnam government’s ‘Friendly policy’, ‘Flexible labour market’ and the securing of various logistics channels for import and export through land and neighbouring ports. It shows that Hanwha Techwin is planning to expand its security business in the mid-long term through diversifying production base. Building a subsidiary in Vietnam, in addition to the existing factory in Tianjin China, reflects this.
Hanwha Techwin will benefit in terms of production capability expansion (8 million units/year), enhanced cost competitiveness through production cost innovation and securing excellent manpower with relatively low labour costs. All of those benefits will drive Hanwha Techwin to jump into the South East Asian market where there is rapid growth, helping it become a global security company.
“This is part of an aggressive investment strategy which will enable us to successfully compete in the global market whilst demonstrating Hanwha Group’s active commitment in its security business,” said Lee Man-Seob, President & CEO of the Hanwha Techwin Security Business Group. “We will not hesitate to make further bold investments in development and marketing in the future.”
Source: Hanwha Techwin Europe