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Bosch opens auto component plant in Dong Nai
By Tan Duc - The Saigon Times Daily
Saturday,  Apr 16, 2011,00:40 (GMT+7)

Bosch opens auto component plant in Dong Nai

By Tan Duc - The Saigon Times Daily

A technician inspects CVT push belts at the Bosch-invested factory that was inaugurated on Thursday in Dong Nai Province - Photo: Le Toan
HCMC – Germany’s Bosch on Thursday inaugurated a hi-tech factory in Long Thanh Industrial Park in Dong Nai Province, where Continuously Variable Transmissions (CVT) push belts are produced for different types of automobile.

Rolf Bulander, president of the Gasoline Systems division of Robert Bosch GmbH, said the factory would turn out 1.6 million products in the first year of its operation, and would scale up production to 2.3 million products a year by 2015. The 55 million euro factory as part of the Gasoline Systems division covers 160,000 square meters.

Its products can be fitted into vehicles ranging from sub-compact cars to sports utility vehicles with diesel, gasoline or hybrid engines.

“With the majority of our customers for CVT technology located in Asia, we expect our production volume in the new facility to rise to 2.3 million units by 2015 to support the growth of the automobile industry, in particular for the Japanese and Chinese automotive markets,” he said at the opening ceremony.      

The factory’s first-year output will all be exported to Japan, and Bosch expects to ship products to China in the near future.

To meet the buoyant increased demand of customers, plans are underway to build an extension building to the current facility, which will double the production floor space, according to the senior executive.

“This will also enable us to increase our production depth to build our own components for push-belt assembly. Work on the extension wing is expected to commence in July 2011 and scheduled for completion by mid 2012,” Bulander said.

The factory in Dong Nai is the second manufacturing base of Bosch in the world besides its main production facilities in Germany.

Bulander also hinted at the possibility of additional investments to manufacture other types of automobile components in Vietnam in the future.

“This (factory) is just our initial step. We are still considering plans to manufacture other products in Vietnam in the future,” Bulander said, but added no new investment decisions have been made.

Bosch is a leading manufacturer in the world in many different areas, including automobile, manufacturing technology, consumer goods and construction industries.

Bosch established its subsidiary Robert Bosch Vietnam in April 2004 and opened a representative office in Hanoi two months later. In September this same year, the group commenced work on the CVT push-belt factory in the southern province.

In June last year, the group announced a project to set up a software and engineering center in HCMC.

Vo Quang Hue, managing director of Robert Bosch Vietnam, said then that the establishment of the center would be an expansion of the operations of Robert Bosch Engineering and Business Solutions Limited in India.

The main focus of this new center would include embedded software development, IT software and mechanical engineering services, he said, adding some 500 engineers would be employed at the center by 2015.

The trade name of Bosch is fairly popular on the Vietnamese market, especially its electric power tools distributed across the country.

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