A ground-breaking ceremony was held this week to build a new factory of tesa, a German firm, in Vietnam.
tesa, a multinational company specializing in the manufacture and distribution of adhesive tapes for the electronics, automotive, and printing industries, has invested €55 million (US$61.2 million) in the 70,000-square-meter facility to expand its manufacturing capacity in Asia, one of the fastest-growing markets, the German Embassy said in a press release on Wednesday, when the ceremony took place.
The move is part of the company's strategy to strengthen its local footprint and shorten the distance between customers and suppliers.
Construction is scheduled to conclude in the first quarter of 2023 at in the Deep C Industrial Zones in Hai Phong City, northern Vietnam, followed by an initial period of commissioning and testing.
Each year, 40 million square meters of adhesive tape will be produced. Official production is slated to begin in the first quarter of 2024.
At the event, Dr Norman Goldberg, CEO of tesa SE, expressed his thanks to the tesa team and the authorities of Hai Phong, as well as German Ambassador to Vietnam Dr. Guido Hildner for their support.
"The laying of this foundation stone is an important milestone for tesa," Goldberg was quoted as saying.
"The Asian adhesive tape market is experiencing very dynamic development, which we will take advantage of.
"The fact that tesa is making an investment of approximately 55 million euros in times of COVID-19 sends a strong signal from the shareholders for the future."
The company currently operates 14 production sites worldwide, including large plants in Germany (Hamburg, Offenburg), Italy, the U.S., and China.
From the plant in Suzhou, China, it supplies high-tech tapes for electronic devices, for example, to bond components and displays in mobile phones and tablets.
"Access to markets, fast and flexible delivery to customers, and the development of local raw materials are important factors in international competition," said Stefan Schmidt, head of tesa's supply chain and operation.
"All these requirements are fulfilled by the additional capacities created on-site."
tesa's customers, particularly those in the electronics and automotive industries, are relocating to Vietnam in greater numbers.
Despite the global pandemic crisis, the Southeast Asian country managed to increase growth by 3.8 percent in the first quarter of 2021. In 2022, growth of 6.5 percent is forecast.
As a multinational, the company develops innovative adhesive tape and self-adhesive systems solutions for various industries, commercial customers, and end consumers.
The age of technical adhesive tape began 125 years ago. Currently, there are more than 7,000 tesa adhesive solutions that help improve the work, products, or lives of customers.