(Chinhphu.vn) – On the morning of August 23, at Chan May – Lang Co Economic Zone, Thua Thien Hue Province, Kim Long Motor Hue Joint Stock Company held a groundbreaking ceremony for the construction of the Kim Long Motor engine manufacturing factory. This is also the first time Vietnam has been handed over leading advanced technology to proactively produce modern automobile engines and engines for other industries.
Kim Long Motor Hue Joint Stock Company and YuChai Joint Stock Company (China) officially signed a comprehensive strategic cooperation agreement on engine production and manufacturing in Vietnam - Photo: VGP/Nhat Anh
Building a $260 million auto engine factory in Hue
At the program, Kim Long Motor Hue Joint Stock Company and YuChai Joint Stock Company (China) officially signed a comprehensive strategic cooperation agreement on engine production and manufacturing in Vietnam, marking an important turning point not only for Kim Long Motor Hue but also for the Vietnamese automobile industry.
To realize the development strategy, Kim Long Motor and YuChai held a groundbreaking ceremony to build the Kim Long Motor engine manufacturing factory in the Kim Long Motor Hue Automobile Manufacturing and Assembly Industrial Park, in Chan May - Lang Co Economic Zone.
Thus, this is the first time Vietnam has been handed over leading advanced technology to proactively produce modern automobile engines and engines for other industries, contributing to realizing the long-standing dream of many generations of Vietnamese people and also contributing to the industrialization and modernization of the country.
The Kim Long Hue engine manufacturing and production factory has a total investment of 260 million USD divided into 2 phases. Phase 1 focuses on the production and manufacturing of engines for the automobile industry, expected to be operational in the first quarter of 2025, with an automation level of up to 90%. The factory's products are diverse with engine lines used in automobile manufacturing, marine engines, generator engines, engines used in agricultural production and engines for machines used in the production of civil works...
Delegates perform the groundbreaking ceremony for the construction of a $260 million engine manufacturing plant in Chan May – Lang Co Economic Zone, Thua Thien Hue Province – Photo: VGP/Nhat Anh
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.
The Kim Long Motor engine manufacturing factory, together with the large-scale mechanical stamping factory and Kim Long Motor's supporting technology factories, is expected to create a breakthrough in production technology, improve the content of science and technology and most importantly, master the technology of automobile manufacturing in Vietnam, affirming the leading position of the Kim Long Motor brand in the Vietnamese and world markets; actively contributing to the development of the Vietnamese automobile industry.
The Kim Long Motor Hue production and assembly complex project contributes to increasing state budget revenue and creating jobs for thousands of people - Photo: VGP/Nhat Anh
Realizing the Development Strategy of Vietnam's Automobile Industry
Speaking at the event, Mr. Phan Quy Phuong, Vice Chairman of Thua Thien Hue Provincial People's Committee, said that the Kim Long Motor Hue Production and Assembly Complex Project is a complex for manufacturing and assembling passenger cars, trucks, and cars; manufacturing auto parts and components; with an expected capacity of about 108,800 cars/year. After the project was approved for investment, the investor actively coordinated in site clearance, focused on implementing procedures on planning, construction, land, environment, etc. and started construction of phase 1 of the project.
Within about 18 months, the Company has carried out construction with many project items, many procedures related to the Central ministries and branches and has basically completed phase 1 (production of passenger cars) of the Kim Long Motor Hue production and assembly complex project; average production capacity is about 500 cars/month.
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 about 291 billion VND to the budget in the first 7 months of 2024, 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%).
“The signing ceremony of the comprehensive strategic cooperation agreement between Kim Long Motor and YuChai Joint Stock Company and the groundbreaking ceremony for the construction of the Kim Long Hue engine manufacturing plant today are important events, not only for Kim Long Motor but also for the Vietnamese automobile industry, aiming to realize the Vietnam Automobile Industry Development Strategy approved by the Prime Minister in Decision No. 1168/QD-TTg dated July 16, 2014 and is the pride and honor of Thua Thien Hue province,” said Mr. Phan Quy Phuong.
According to Mr. Phan Quy Phuong, the Kim Long Motors Hue production and assembly complex project is a key project of the province. With initial successes, the investor is currently preparing documents to adjust the total investment capital of the project to about 21,000 billion VND. The project is expected to contribute positively to the development of the automobile industry, creating a spillover effect to attract enterprises in the automobile support industry to invest in the province; contributing to the economic restructuring, increasing local budget revenue and creating jobs for local workers.
Kim Long Motor Hue production and assembly complex – Photo: VGP/Nhat Anh
Mr. Ly Quoc Viet, Permanent Deputy General Director of Kim Long Motors shared: “Kim Long Hue Engine Manufacturing Factory plays the role of the “heart” in Kim Long Motors’ strategy of developing Vietnamese-branded automobile products, meeting the strategic goal of leading the commercial vehicle market in Vietnam and aiming for export. The combination of Kim Long Motors and YuChai brings optimal engine solutions in terms of safety and fuel consumption.
The strategic cooperation between Kim Long Motors and YuChai also has important significance in contributing to promoting socio-economic development and modern industrialization of Thua Thien Hue province in particular and the Central region in general; at the same time, promoting economic and investment cooperation between Vietnamese and Chinese partners, practically implementing the agreements of the two countries' senior leaders.
To speed up the progress of the Kim Long Hue engine manufacturing plant in particular and the entire project in general, the leaders of the People's Committee of Thua Thien Hue province requested that in the coming time, Kim Long Motors Hue Joint Stock Company and its partners focus resources on implementing the construction of the Kim Long Hue engine manufacturing plant to meet the set schedule; at the same time, focus resources on investing in the construction to complete the entire project and put it into operation according to the goals and schedule approved in the investment policy.
The provincial People's Committee also requested the Phu Loc District People's Committee to focus resources, urgently complete compensation and site clearance for the entire project area, hand over clean land to investors to promptly implement construction of the remaining phases of the project; relevant departments, branches and the Management Board actively support and accompany investors, quickly resolve administrative procedures; remove difficulties and obstacles so that the project can be implemented on schedule.
On this occasion, Kim Long Motor also launched a completely new generation of sleeper buses under the Kim Long 99 brand, equipped with a new generation YuChai K11 engine. Kim Long 99 buses use superior technology such as monocoque (unitary body and chassis) suitable for all operating conditions in Vietnam, helping to reduce the vehicle's weight, save fuel, increase load capacity and safety features. Kim Long 99 buses include 3 versions: Deluxe, luxury and premium (24 and 34 beds) with prices of 3.598 billion VND, 3.678 billion VND and 4 billion VND respectively.
Immediately after the launch program, Kim Long Motor and YuChai handed over the first batch of 60 Kim Long 99 sleeper buses within the contract of 600 buses of 3 major customers: FUTA Bus Lines, Ha Son Company and Tan Phat Dat Company in 2024.
Chinhphu.vn
Source: https://baochinhphu.vn/lan-dau-tien-viet-nam-duoc-ban-giao-cong-nghe-tien-tien-de-san-xuat-dong-co-o-to-10224082315451776.htm
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