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Hanwha Techwin’s security business group held a ground-breaking ceremony on Thursday, April 20, 2017 for a newly established subsidiary in Vietnam, with a $100m investment to expand its global security business.
Several locations were considered for the new subsidiary in Vietnam. After market research, Bac Ninh province, lying about 35 km North East of Hanoi, was chosen as the final location as, the firm says, it is able to offer significant benefits in respect of parts supply, logistics and manpower.
A 60,000m2 site will be developed as a base to produce Hanwha Techwin security products, including cameras and recording devices. Construction is due to be completed by December 2017, with production line set-up and test production targeted for the first half of 2018, and mass production commencing in the second half of 2018.
Hanwha Techwin says that the investment was accelerated due to the Vietnam government’s ‘friendly policy’, ‘flexible labour market’ and the securing of various logistics channels for import and export through land and neighbouring ports. Hanwha Techwin says that it’s planning to expand its security business in the mid- to long term through a diversifying production base. Building a subsidiary in Vietnam, besides an existing factory in Tianjin China, reflects this.
Hanwha Techwin says that it will benefit in terms of production capability expansion (eight million units/year), cost competitiveness through production cost innovation and manpower with relatively low labour costs. All of those benefits will drive Hanwha Techwin to jump into the South East Asian market where there is rapid growth, helping it become a global security company.
Lee Man-Seob, pictured, President and CEO of the Hanwha Techwin Security Business Group, said: “This is part of an aggressive investment strategy which will enable us to successfully compete in the global market whilst demonstrating Hanwha Group’s active commitment in its security business. We will not hesitate to make further bold investments in development and marketing in the future.”