Engineered polymer solutions company Trelleborg Group is planning to develop an advanced production facility in Vietnam, with construction expected to be completed by 2025.
The proposed facility will be located in the Phu My 3 Specialised Industrial Park (SIP) in Ba Ria Vung Tau province, one of Vietnam's Southern Key Economic Zones and is set to start production in 2026.
Between 2023 and 2026, the Sweden-headquartered group will invest SEK400m ($36.74m) into the project.
President of the marine and infrastructure division of Trelleborg, Richard Hepworth, emphasised the advantages of establishing the facility in Vietnam and recalls previous triumphs in other regions.
"We’re excited to begin a new chapter in Vietnam - the third biggest economy in Southeast Asia. With an established manufacturing facility already in Qingdao, China, we saw it as a logical decision to build a second facility close by," said Hepworth.
“Our markets have witnessed strong growth in the past years. With a brand-new base in Vietnam, we can further enhance our production standards and distribution network to serve customers more effectively, not just across the Asia-Pacific region but also beyond."
The proposed facility will complement existing operations at the company's Qingdao-based facility, which serves the Chinese market as well as other regions around the world.
According to business accelerator Source of Asia, Vietnam is a prominent location for manufacturers, with 1,738 foreign direct investment projects in 2021 and a total registered capital of $15.2bn, up 4.1% from 2020.
"Geographically, Phu My 3 SIP has a strategic position due to its proximity to major transportation routes," explained Hepworth.
"It is about 60km from the southern business hub in Ho Chi Minh City, 2km from Cai Mep-Thi Vai Deep Sea Port and approximately 30 minutes from the new Long Thanh International Airport, expected to open in 2025."
Trelleborg says that the Vietnam facility will satisfy future needs for efficient manufacturing processes as well as sustainability standards, incorporating features like solar panels and wastewater systems.
A whitepaper, jointly issued by Trelleborg and GreenPort based on research from 91 companies across diverse marine professions, underscores the significance of sustainability in enterprises.
When it comes to sustainability, 56% of respondents said that long-term value generation is more essential than short-term performance, which Trelleborg underlines in its engineering application.
Furthermore, the establishment of more resilient infrastructure coincides with UN Sustainable Development Goal 9, focusing on industry, innovation, and infrastructure.
Trelleborg's marine and infrastructure division, which is headquartered in the UAE, provides innovative engineered polymer solutions to the marine, infrastructure and energy industries and through its global footprint, the company provides tailored solutions to customers worldwide.
According to Trelleborg, the introduction of a new site in Vietnam will strengthen the company's production capabilities in the marine fender, marine construction, and infrastructure product areas.
