South Korean aero parts supplier KP Aero Industries broke ground on its KP Vina Aircraft Component factory project, worth US$20 million in investment, in Da Nang City, central Vietnam on Tuesday.
Spanning some two hectares at Da Nang Hi-Tech Park, the facility will specialize in manufacturing and assembling components such as auxiliary power units, wingboxes, and winglets for Boeing 787 and Boeing 737 Max aircraft.
The plant is slated for commercial operation this year.
|Delegates attend a ground-breaking ceremony for the KP Vina Aircraft Component factory project, located at Da Nang Hi-Tech Park in Da Nang City, central Vietnam, January 30, 2024. Photo: Le Trung / Tuoi Tre
A few days ago, the Da Nang hi-tech parks and industrial zones authority granted an investment certificate for KP Aero to develop the project.
KP Aero has years of experience in the industry and is a partner of leading aviation companies like Boeing, Airbus, and Korean Air.
Da Nang officials expressed their hope that the project would pave the way for the establishment of an aerospace complex in the central coastal city in the years ahead and for attracting more international investors in the field to the city.
The Da Nang hi-tech parks and industrial zones authority looks to attract around $200 million to develop at least three projects specializing in aerospace, semiconductor chip technology, and high-quality healthcare.
|Excavators are seen at the construction site of the KP Vina Aircraft Component factory project, located at Da Nang Hi-Tech Park in Da Nang City, central Vietnam. Photo: Le Trung / Tuoi Tre
Tran Chi Cuong, vice-chairman of the Da Nang administration, said the KP Vina Aircraft Component plant project is aligned with the city’s master plan on socio-economic development and investment priorities for the 2020-25 period and the following years.
As per the plan, Da Nang is striving to become a regional and global investment destination in the aerospace industry.
Once the plant is put into service, it is expected to make significant contributions to the city’s industrial production and export revenues, provide employment for residents, and boost local socio-economic growth.
The KP Vina Aircraft Component factory is the second aerospace project to be developed at Da Nang Hi-Tech Park.
In March 2020, Vietnam UAC, a subsidiary of the U.S.-based manufacturer of aerospace products UAC, commenced operations of its Sunshine aerospace parts manufacturing plant at the hi-tech park.