Hanwha Aero Engines plans to raise investment in Vietnam by $60 mln

Hanwha Aero Engines Company Limited, under South Korean chaebol Hanwha, plans to raise its investment in a factory in Hanoi from $200 million to $260 million, said CEO Nam Hyung Wook.

The executive made the statement at a meeting with Hanoi Mayor Tran Sy Thanh on Friday, the second working day after the Lunar New Year holiday (Tet). The expansion aims to produce components for aircraft engines, he noted.

In 2023, the company posted a revenue of $140 million. The firm expects 2024 revenue to grow 17% year-on-year, as output could increase 40% in line with enlarged production, the CEO highlighted.

In December 2018, Hanwha Aero Engines’ 9.7 hectare factory in Hanoi’s Hoa Lac Hi-Tech Park was inaugurated after over a year of construction. The $200 million plant manufactures components for aircraft engines and industrial gas-fired turbines, and is certified by the U.S.-based General Electric.

In October 2019, Hanwha Aero Engines kicked off the construction of the factory’s phase 2 for a manufacturing shop.

Hanwha Aero Engines’ investment is the first aviation engine project in Vietnam.

Vietnam has been attracting investments from aviation firms. In January 2024, South Korea’s KP Aero Industries, a supplier of components for Boeing and Airbus planes, conducted a ground-breaking ceremony for a $20 million factory in Vietnam’s central city of Danang. The two-hectare project, called the KP Vina Aircraft Component factory, is set for completion in September 2024, employing 500 people.

Located in Danang Hi-Tech Park, the plant will manufacture and assemble aircraft components, including APU doors, MIC tips, wingboxes, winglets, and flap supports for Boeing 787 and Boeing 737 Max aircraft.

The investment is the second aviation project in Danang. The first, also in Danang Hi-Tech Park, is a $170 million investment poured in by the U.S.-based Universal Alloy Corporation (UAC), a supplier of Boeing and Airbus. Entering operation in March 2020, the factory’s annual output is 12,470 tons of components.