Toyoda Gosei opens its second plant in Vietnam
TOKYO, NNA – Japanese auto parts maker Toyoda Gosei Co. has opened a plant making airbag parts and steering wheels near Hanoi to meet rising global demand for vehicle safety system products amid tightening regulations.
The company has invested $24.6 million to build the plant in Thai Binh Province, about 120 kilometers southeast of the capital, shipping all products to its airbag assembly factories in Europe, Japan, North America and other Southeast Asian countries, Toyoda Gosei spokesman Yusuke Kawahito told NNA Friday.
The unit of Toyota Motor Corp. established Toyoda Gosei Haiphong Co. in 2004 to produce car safety products in the Southeast Asian country.
The auto components maker plans to boost the combined annual output capacity of the two plants to 25 million airbag parts and four million steering wheels within four years. That represents an increase of about 50 percent and 70 percent respectively from the business year ended March 2019, according to a statement on Thursday.
The Vietnamese unit currently employs 597 workers at the new plant compared to 3,834 at the first factory, the statement said.
Toyoda Gosei also makes airbag parts and steering wheels in countries including China, Indonesia, Mexico and Thailand.
Toyoda Gosei’s sales of safety system products have increased by 30 billion yen ($278 million) in the past three years to 240 billion yen as of March this year, according to its financial statement released in May.