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 on Tuesday.
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.
Speaking at the event, Danang Vice Chairman Tran Chi Cuong said the project is expected to bring massive benefits to investors and the city’s socioeconomic growth. It also highlighted the city’s consistent policy of reducing red tape to facilitate investments and businesses, especially private ones, Cuong added.
In 2024, Danang is looking to attract at least three investments worth $200 million in total into its hi-tech park, focusing on aerospace-aviation, semiconductors, and high-quality healthcare, the municipal leader added.
Danang authorities granted an investment certificate to the firm at an investment conference themed “Meet Danang 2024” last Friday. The investment is the second aviation project in the city.
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.