U.S. firm begins construction of $170 mln aerospace parts factory in Vietnam

The plant would come up on a 1.67 hectare site in the Hi-Tech Park in two phases by 2026, Da Nang's Investment Promotion Agency said.

The factory will produce 4,000 of the five million parts used in commercial aircraft when it opens in 2020, and export them to North America and the EU.

The work was inaugurated Friday morning. Photo by: DINCO Construction Technology JSC

Universal Alloy Corporation (UAC) Vietnam plans to initially supply fuselage components for Boeing 787, 777 and 737 aircraft and engine parts to Rolls Royce. It targets exports of $25 million by 2021, $85 million a year later and $180 million from 2026 onwards.

UAC plans to recruit 1,200 highly skilled mechanical, electrical and automation workers and another 2,000 to develop supporting industrial production chains. 

The company is a leading global manufacturer of aircraft components, usually producing them under long-term supply contracts with Boeing and Airbus. It also supplies components to Embraer, Bombardier and their associated supply chains.

Vietnam’s first ever airplane parts factory was set up by South Korean conglomerate Hanwha Group last December.

Hanwha Aero Engines, situated in Hanoi’s Hoa Lac Hi-Tech Park, began making aircraft engine components for export last January.