Boeing to boost manufacturing in Vietnam as supplier builds plant
Thursday, January 25, 2024, 09:11 GMT+7
HANOI -- South Korean aero parts supplier KP Aero Industries said on Wednesday it plans to invest $20 million in a Vietnam factory to assemble components for Boeing planes, a move that would expand the U.S. aviation firm's manufacturing network in the Southeast Asian country.
The U.S. aviation giant already has seven "sub-tier" suppliers - companies that sell components to its direct suppliers - in Vietnam.
In September, Boeing also reached a preliminary deal with flag carrier Vietnam Airlines for the sale of 50 Boeing 737 Max 8 jets.
Lee Young-su, a senior official at KP Aero, told Reuters the company would initially invest $20 million through 2028 to assemble components for Boeing 787 and 737 aircraft.
KP Aero will be formally granted later this week the authorisation to invest $20 million in Vietnam, authorities in the central city of Da Nang said in a media statement on Wednesday.
A Vietnamese official said the investment will be in the city's high-tech industrial park.
KP Aero is a supplier of parts to Korean Air's engineering division, which is in turn a direct supplier to Boeing.
Boeing deferred to KP Aero for comment.
