South Korea’s KP Aero Industries, a supplier of components for Boeing and Airbus planes, is set to begin building a $20 million factory in Vietnam’s central city of Danang in February.
The Danang Hi-Tech Park and Industrial Zones Authority (DHPIZA) said on Thursday that it had granted an investment certificate to the Korean firm to process the project, named the KP Vina aviation parts factory. This is the second aviation-aerospace project in Danang.
The $20 million project will manufacture and assemble aircraft components, including APU doors, MIC tips, wingboxes, winglets, and flap supports for Boeing 787 and Boeing 737 Max aircraft.
KP Aero Industries said it appreciated the support from municipal authorities in processing of the project’s administrative procedures, aiming to start official operation this year.
The central coastal city of Danang licensed 104 new foreign-invested projects with total registered capital of $151.2 million in 2023, according to the municipal Statistics Office.
During the year, the coastal city also saw 42 FDI projects with capital additions of $20.2 million, and 37 foreign investors spend $10.7 million purchasing shares in Vietnamese firms.
Another major aviation investment in the Danang Hi-Tech Park is the $170 million 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. The firm reaped an export revenue of $25 million in 2021 and targets to increase the figure to $180 million from 2026.