Trelleborg, a Sweden-based polymer solution provider, will invest SEK400 million ($36.81 million) in a factory in the southern province of Ba Ria-Vung Tau from 2023-2026.
The state-of-the-art facility, Trelleborg's second plant in Vietnam, is set to begin manufacturing in 2026, mainly serving marine solutions, such as construction, infrastructure, and fenders.
The investment is part of the firm's restructuring plan to shift production to Vietnam and China, according to a company release.
The Ba Ria-Vung Tau plant will meet future demands for both efficient production processes and sustainability, including solar panels, water and wastewater systems.
Trelleborg’s first plant, located in the southern industrial province of Dong Nai, is scheduled to open at the end of 2023, providing sealing solutions.
Trelleborg is a world leader in engineered polymer solutions, such as O-rings, hydraulic seals, rotary shaft seals, oil seals, static seals, pneumatic seals, and mechanical face seals. The products seal, damp, and protect critical applications in demanding environments, in order to improve sustainable performance of equipment. It recorded a revenue of SEK30 billion ($2.75 billion) from operations in 40 countries in 2022.
Registered foreign direct investment (FDI) capital in Vietnam declined 7.3% year-on-year to nearly $10.86 billion in the first five months of 2023, while disbursed capital dropped 0.8% to $7.56 billion, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
As of May 2023, Vietnam had attracted 37,238 valid FDI projects with total registered capital of $447.66 billion. Of which, Ba Ria-Vung Tau accounted for 537 projects worth $33.31 billion, the fifth highest in terms of capital.