Thua Thien Hue: Groundbreaking ceremony for construction of $260 million automobile engine factory
Kim Long Hue Engine Manufacturing Plant is divided into 2 phases. Phase 1 focuses on manufacturing engines for the automobile industry and is expected to be operational in the second quarter of 2025.
On August 23, Kim Long Motor Hue Joint Stock Company and Yuchai Joint Stock Company (China) held a groundbreaking ceremony for the construction of the Kim Long Hue Automobile Engine Manufacturing Factory in Chan May - Lang Co Economic Zone.
The Kim Long Hue engine manufacturing plant is divided into two phases. Phase 1 focuses on the production and manufacturing of engines for the automotive industry, expected to be operational in the first quarter of 2025, with an automation level of up to 90%. The factory's products include a variety of engine lines: used in automobile manufacturing, marine engines, generator engines, agricultural engines, and engines for machines used in the production of civil works.
In the first phase, the factory will prioritize the production and assembly of internal combustion engines (Diesel), CNG engines and electric engines with a capacity of more than 12,000 engines per year and will increase capacity in the following years. The next phase will focus on investing in the production and manufacturing of axles and gearboxes for automobile transmission systems.
The factory's products not only meet Kim Long Motor's production needs, serving the domestic market but also aim to export to ASEAN, Korea and other markets. This is a solid foundation for Kim Long Motor to increase technology content and increase the localization rate, gradually participating more deeply in the global supply chain.
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| Signing ceremony of cooperation agreement between Kim Long Motor Hue Joint Stock Company and YuChai China Joint Stock Company |
Mr. Vo Phi Hai, Director of Kim Long Motor Hue Joint Stock Company, said that the construction of the Kim Long Hue Automobile Engine Manufacturing Factory is a turning point, not only for the company but also for the entire Vietnamese automobile industry. The factory will not only meet the demand for automobile engine production for the domestic market, but also aim to export to the Southeast Asian market and Korea - the leading country in Asia in automobile manufacturing technology.
Mr. Ly Quoc Viet - Permanent Deputy General Director of Kim Long Motor said that the factory plays the role of "heart" in the strategy of developing Vietnamese-branded automobile products of the enterprise, meeting the strategic goal of leading the commercial vehicle market in Vietnam and aiming for export. The combination of Kim Long Motor Hue Joint Stock Company and YUCHAI Joint Stock Company brings optimal engine solutions in terms of safety and fuel consumption.
Speaking at the Groundbreaking Ceremony, Mr. Phan Quy Phuong - Vice Chairman of Thua Thien Hue Provincial People's Committee, said that the Kim Long Hue Automobile Engine Factory project is a large and important project of the province.
It is known that since the passenger car assembly factory was put into operation (February 2024) up to now, it has produced nearly 300 vehicles including sleeper buses, seat buses, city buses, mini buses and delivered more than 200 sleeper buses (34 beds) to customers; paid to the budget in the first 7 months of 2024 about 291 billion VND, accumulated budget payment to date is about 408 billion VND; created jobs for about 1,800 people (of which workers in Thua Thien Hue province account for about 70%).
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| Kim Long Motor Hue production and assembly complex |
After the automobile engine factory comes into operation in the first quarter of 2025, it will contribute to the economic development of the province, solve the local labor demand, and help Thua Thien Hue province soon achieve the goal of becoming a centrally-run city.
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