Tokyo Keiki to anchor in Danang

July 30, 2012 | 11:13

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Japan’s Tokyo Keiki Company last week announced it would like to establish a subsidiary company in central Danang city.

Luong Minh Sam, head of Danang’s Representative Office in Japan, said: “Last week, Motoshi Mitobe, vice chairman of Tokyo Keiki Company brought the decision to invest in Danang city, Vietnam out into the open.”

According to Sam, the $40 million Tokyo Keiki Precision-Technology factory project would specialise in manufacturing hydraulic equipments and some related high-tech products. Mitobe said Tokyo Keiki Company planned to submit an application to set up this company to Danang authorities this month.

In the first stage, the company will rent a workshop in the city and operations will begin in April 2013. Then in 2014, it will move to a newly-built facility covering 30,000 square metres in Danang Hi-Tech Park.

At first, the new facility will produce electromagnetic valves with 50,000 small-sized products per month and 5,000 medium-sized per month. Components needed for the facility’s production will be mainly imported from Japan and once operating, all the facility’s products will be exported to the US, Europe and some Asian countries namely China and Korea.

“Danang offers relatively developed infrastructure and stable human resources which is suitable for development of high-tech sector. In addition, its proximity and access to the international airports and maritime ports are deemed advantageous as a distribution point to other Asian countries. In the future, there will be a direct airline from Japan to Danang city,” said Mitobe.

Japan’s Tokyo Keiki Company was founded in 1896 with 25 research and development centres established in Japan and 60 subsidiary companies set up around the world. In 2011, the company’s revenue reached more than $524 million and expected to hit $569 million in 2012.

Sam said that Danang aimed to draw more Japanese investors to do business in the city. According to the statistics of the Ministry of Planning and Investment’s Foreign Investment Agency, by July 20, 2012, Danang was home to 223 foreign invested projects with total registered investment capital of $3.55 billion.

The city licenced 14 new foreign invested projects worth $57.13 million between January and July 20 this year.