KMH Hi-Tech to Establish New Factory in Vietnam

[Asia Economy Reporter Koh Hyung-kwang] KMH Hi-Tech announced on the 28th that it will invest 7.8 billion KRW to build a new factory in the Que Vo 2 Industrial Complex area in Bac Ninh, Vietnam.

The strategy is to smoothly maintain business relationships with major clients and improve the cost structure, including labor and transportation costs, by adding a production site in Vietnam in addition to the existing sites established in China and the Philippines.

The factory site in Vietnam, currently preparing for groundbreaking, covers 5,000 pyeong of land and 2,000 pyeong of building area. Approval has already been obtained from the authorities for the investment registration certificate (IRC) and enterprise registration certificate (ERC) for establishing the corporation.

KMH Hi-Tech plans to relocate part of its domestic production line for the Vietnam investment. It is also promoting the introduction of new production facilities to expand the production line.

A KMH Hi-Tech official stated, "We will dispatch specialized engineers working at the domestic corporation to secure production yield with full effort, aiming for early equipment setup for faster mass production of products."

Additionally, the official added, "In the case of SSD cases, which require complex processes and have a high labor cost ratio in product cost, we expect to maximize profit margins based on the lower labor costs in Vietnam compared to domestic costs."

KMH Hi-Tech is pursuing financial borrowing of approximately 12 billion KRW to secure funds. Lee Sang-guk, CEO of KMH Hi-Tech, emphasized, "Based on this investment, we will repeatedly challenge ourselves to innovate sales scale and pioneer the global market, further enhancing the company's value."

This content was produced with the assistance of AI translation services.