Germany's Südwolle expands Vietnam yarn plant with $25 mln extra investment

A unit of Germany-based wool yarn producer Südwolle Group will invest an additional VND657.5 billion ($24.97 million) to expand its spinning and dyeing facility in central Vietnam.

Authorities in Khanh Hoa province on Tuesday approved an amendment to the investment registration certificate for the Ninh Thuan dyeing and spinning plant, allowing the project's second phase to proceed, according to local officials.

Following the adjustment, total investment in the project will rise to more than VND1.18 trillion ($44.66 million).

The facility is operated by Ninh Thuan Dyeing Textile Limited Company Limited, a member of Südwolle Group. The plant, located in Du Long Industrial Park, completed its first phase in 2025 with an investment of more than $21 million and annual capacity of 1,450 tons.

The second phase aims to meet growing domestic and international demand for wool yarn products while enhancing production capabilities and strengthening Südwolle's integrated supply chain in Vietnam. Upon completion, the factory’s annual capacity is expected to increase to around 4,000 tons, nearly tripling its current output.

The expansion includes the construction of an additional spinning mill and the installation of machinery and equipment sourced from Italy, France, the United States, Germany, Switzerland, and China.

The company plans to hire an additional 140 workers for the second phase, bringing total employment at the site to about 300 people across both phases. Construction, equipment installation, and commissioning are scheduled for completion by June 2027.

The current Khanh Hoa province is formed following an administrative merger with the former Ninh Thuan province last July. As of end-Q1, Khanh Hoa had 173 valid foreign-invested project totalling over $6.34 billion, according to provincial authorities.