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Boeing to boost manufacturing in Vietnam as supplier builds plant

Boeing to boost manufacturing in Vietnam as supplier builds plant

Thursday, January 25, 2024, 09:11 GMT+7
Boeing to boost manufacturing in Vietnam as supplier builds plant
An aircraft of the national flag carrier Vietnam Airlines taxis at Noi Bai airport in Hanoi, Vietnam December 23, 2020. Picture taken December 23, 2020. Photo: Reuters

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. 



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