$260 mln engine plant opens in central Vietnam

Vietnam's Kim Long Motor Hue JSC and China's Yuchai JSC last Friday inaugurated their $260 million Kim Long Hue engine manufacturing plant in Hue city, rolling out the first Yuchai engines.

Located in the Kim Long Motor Hue Automotive Manufacturing and Assembly Industrial Zone within the Chan May-Lang Co Economic Zone, the 6.5-ha plant forms part of a comprehensive strategic partnership agreement for automotive engine manufacturing in Vietnam signed by the two companies in August 2024.

"With the plant, for the first time, Vietnam has access to leading advanced technology to proactively produce modern automotive engines and engines for other industries," Kim Long stated at the groundbreaking ceremony last year.

The facility features a state-of-the-art, fully integrated production line with up to 90% automation, enabling it to manufacture a diverse range of engines, including for automobiles, marine vessels, agricultural machinery, and power generators.

Yuchai JSC is a leading automotive engine manufacturer in China.

In its initial phase, the plant has completed 2.5 hectares dedicated to producing and assembling internal combustion (diesel) engines, with an annual capacity exceeding 40,000 units, equivalent to just three minutes per engine.

It employs a suite of cutting-edge technologies to optimize and precisely control every production stage, including JIS (just-in-sequence) systems for automated, sequential delivery of components, and Vietnam’s first precision assembly robot system.

In the second phase, the two sides will continue investing heavily in automated production lines to manufacture core engine components, including engine blocks, cylinder heads, crankshafts, camshafts, and connecting rods.

Kim Long Motor Hue JSC operates in vehicle manufacturing, assembly, and trading; production of automotive components; and industrial park infrastructure business.

The Kim Long Motor Hue Automotive Manufacturing and Assembly Industrial Zone is a complex of multiple factories, including those for production and assembling of buses, minibuses, trucks, and passenger cars; manufacturing of engines, axles, and gearboxes; car body stamping; and chassis cutting.

The complex, spanning over 600 hectares at the Chan May-Lang Co Economic Zone, is also home to auxiliary factories related to automotive technology and semiconductor technology, as well as bonded warehouses.

Established in 1951, headquartered in Yulin, Guangxi province, and with modern technology lines meeting international standards, Yuchai produces various types of engines: diesel, hybrid, EV, and CNG.

The corporation has an annual production capacity of up to 600,000 engines and a global distribution network, and is present in over 180 countries and territories.