Japanese water intake equipment maker Nagaoka establishes Vietnam manufacturing unit
HANOI, NNA - Japanese water intake equipment maker Nagaoka International Corp. has set up a wholly-owned subsidiary in Vietnam, its second overseas production foothold after China, providing such technology in anticipation of the increasing infrastructure development.
Nagaoka Vietnam Co. was established with a capital of $1 million in Hung Yen Province, southeast of Hanoi, on Thursday to produce water intake screens used for building well or dam. The facility is expected to be operational by the end of the year.
A screen made of steel or stainless steel is placed inside a cylindrically excavated well to intake water and block iron and other substances.
“We’re looking at growing demand there because the water-related infrastructure in local areas (of Vietnam) has not been well developed,” an official involved in the launch of the Vietnam unit told NNA on Wednesday.
Through the new Vietnam foothold, Nagaoka International is seeking a chance of joining local water intake projects, the official added. He did not provide further information such as target revenue for its Vietnam business.
He also expects Vietnam’s manufacturing base to “improve cost competitiveness” for Nagaoka International, allowing it to export cost-competitive Vietnamese-made products to Japan, where it makes high quality but more expensive water intake equipment. “Such export chances are high,” he said.
Demand for Nagaoka’s products has been on the rise in other Southeast Asian nations like Malaysia, the company said in a statement on Monday.
With the water intake screen, Nagaoka International has been involved in more than 1,000 projects in Japan. The company already has a wholly owned manufacturing subsidiary in China.