Hitachi Metals to produce cables for electric parking brakes in Vietnam

30, May. 2019

TOKYO, NNA - Hitachi Metals Ltd. will produce cables for wire harnesses, a key component in electric parking brakes, in Vietnam to meet growing demand for electrically controlled systems in vehicles.

The Japanese manufacturer said Monday that a new production facility would be installed at its plant in Hai-Duong Province, which is operated by its local unit, Hitachi Cable Vietnam Co., and that output of wire harnesses by Hitachi Metals (Thailand) Ltd. would be increased.

The capacity expansion is part of Hitachi’s plan to increase annual sales of automotive electrical parts and devices by 70 percent between fiscal 2018 and 2025, according to the statement.

Hitachi Metals did not disclose the size of its investment, but said in a statement that the new production capacity at the two locations would become operational in the first half of the fiscal year starting next April.

Wire harnesses, a bundle of electric cables, are considered far superior in terms of resistance and durability to loose cables and wires.

Hitachi said it was already making similar cable products in Japan and China, and that the construction of the new plant would enhance its business continuity plan in emergencies and upgrade its global supply chain.

A company spokesman, who declined to be named, told NNA Wednesday that the decision to build a new facility in Vietnam had nothing to do with the intensifying U.S.-China trade dispute, as the plan “had been in consideration for some time.”