Tokai Kogyo’s plant takes shape

July 09, 2012 | 09:55

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Japan’s Tokai Kogyo last week started construction on a plastic and rubber manufacturing plant to supply parts for automotive industry in central Danang city’s Hoa Cam Industrial Zone.

The plant, which covers 47,000 square metres with a total investment of $10 million, will provide accessories for car-makers in Vietnam and the region. This is the fifth plant of Tokyo-based Tokai Kogyo and the third in Southeast Asia after Thailand and Indonesia.

“We selected Danang as our location for the plant because the city is situated in the central region of Vietnam and at the end of the East-West Economic Corridor linking Myanmar, Thailand, Laos and Vietnam,” general director of Vietnam Tokai Company Isao Takahashi said.

Tokai’s project, operational in March 2013, will significantly contribute to the supporting industry for the automotive industry in Vietnam.

Malaysia’s Tan Chong Holding Berhad is now building an assembly plant in Danang which will start manufacturing Nissan cars in 2012. Last year, Japan’s Mazda Motor Corporation opened an assembly factory at Chu Lai Economic Zone in neighbouring Quang Nam province, about 100 kilometres south of Danang. In addition, the Vietnamese government introduced a strategy for the development of automotive industry and also started to develop a hub for automotive industry in Quang Nam.

Deputy Chairman of Danang People’s Committee Phung Tan Viet said Tokai’s project would help to boost industrial production and exports in Danang city.