The Czech automaker Škoda Auto, a subsidiary of the German Volkswagen Group, has opened a new manufacturing facility in Vietnam, as part of the company’s strategy for international expansion. The facility in the northern Quang Ninh province includes a welding shop, a paint shop, and a final assembly line.
According to Klaus Zellmer, CEO of Škoda Auto, “Opening this new assembly line marks a milestone in our expansion into the rapidly growing Vietnamese market.”
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Škoda is importing completely knocked-down (CKD) kits from its Indian facilities in order to reduce costs and facilitate market access.
Andreas Dick, Škoda Auto board member for production and logistics, said: “The new manufacturing facilities fully reflect Škoda’s high manufacturing benchmarks. The plant is located in Quang Ninh province, close to the port of Haiphong – one of Vietnam’s largest and most modern ports. This ensures the swift delivery of CKD kits from our logistics hub in Pune, India, while also strengthening the synergies that are vital to Škoda’s success in Vietnam and the wider region.”
The plant was built in collaboration with the automaker’s regional partner, Vietnamese Thanh Cong Group, as the centre of the Thanh Cong Viet Hu’ung Automotive and Supportive Industries Complex for $500m. The complex covers an area of 36.5 hectares and is set to produce 120,000 vehicles annually.
Škoda Auto has a strong global presence, with a focus on India as a key market and export hub, and is actively expanding its international footprint in markets like Kazakhstan and Vietnam.
