On March 11, ABB inaugurated a green field manufacturing facility in Vietnam, located on the outskirts of Hanoi. The new unit is built on 87,000 square meters of land in the Tien Son Industrial Zone in Bac Ninh Province and will employ about 100 people. Construction of this complex was completed in around 15 months, with close collaboration and know-how from the lead global technology centers.
Vietnam is in the process of global integration as it makes the transition to a market-oriented economy. GDP growth rates touched the 7-8 per cent levels in the early part of this decade and continue to hover in the 5-6 per cent range even after the recent global slowdown. The country has an installed power capacity of around 16000 mega watts which is being expanded. At the same time it is also strengthening its transmission and distribution network to meet rising electricity demand created by a growing economy. Electricity consumption in Vietnam, with a population of around 85 million, is estimated to double in the next six years, which provides some idea of the market potential.
This latest addition to the Power Products family is part of the company's strategy of building production capacity in fast-growing markets and creating competitive regional and global sourcing hubs. "This new manufacturing unit is part of our global footprint approach. Vietnam is a growing market and a competitive location for a production hub," said Bernhard Jucker, head of ABB's Power Products division.
The new facility will manufacture key components for high-voltage products to serve ABB's global needs. "This state-of-the-art facility is equipped with the latest technologies including robot applications in the manufacturing process" said Giandomenico Rivetti, global BU manager for HV products, who inaugurated the new plant along with the local management and key government officials. "We have reposed considerable trust in the local skill base and the work we will do here goes beyond simple assembly. On the whole, we look forward to the Bac-Ninh unit providing us with a competitive sourcing base for critical high voltage product components", he added.
The new unit will also manufacture medium-voltage power products for the growing Vietnamese market. This includes the latest generation of compact substations and ABB's highly successful UniGear indoor switchgear for primary distribution. "This factory is truly world class and makes me feel I am buying highly reliable and efficient products. Competitiveness, quality, delivery speed and after-sales support will be some of the key differentiators for ABB" said Bui Xuan Hoi, Director of Viet A, a leading local EPC and electrical equipment manufacturer.
In conjunction with the inauguration ceremony, ABB also hosted a customer event, following a walkthrough of the new facilities. Over 350 customers and external visitors had the opportunity to see a range of ABB's power and automation technology offering to utility and industrial customers. Organized by user sector, in keeping with our customer centric 'one ABB' approach, the impressive showcase covered low, medium and high voltage products, transformers, motors, drives robotics and the service offering.
A prototype of the compact substation to be manufactured at the Bac-Ninh plant attracted significant interest and was a great opportunity to introduce the product to the local market. Nguyen Duc Minh, a technical expert from National Power Transmission Corporation, the country's leading transmission utility remarked : "with such a modern and high-tech factory, ABB will be well positioned serve the local market with high quality products and provide good after-sales service"
Bac Ninh is one of Vietnam's fastest growing provinces and is attracting significant foreign investment from regional and global multinationals. Tran Van Tuy, Chairman of Bac Ninh People's Committee and Vu Duc Quyet, Director of Bac Ninh Industrial Zone Management Authority honored the occasion. Other prominent guests included the Swedish and Swiss business consuls in Vietnam and leading utility and industry customers as well as channel partners.
Established in Vietnam in 1993, ABB will have over 750 employees in the country, including the new unit. The headquarters and Transformer factory are located in Hanoi with branch offices in Ho Chi Minh City, Da Nang, Vung Tau and now Bac Ninh ensuring a nationwide presence. ABB's Hanoi unit manufactures a range of power transformers up to 100 MVA capacity with voltage ranges upto 172 kV and is recognized as a leading player in the local market as well as serving as an export base in the Asia Pacific region.
"This new factory is a clear commitment by ABB to Vietnam, both as a high potential market and a resource base. We now have to honor the trust reposed in us by delivering high quality products at the lowest possible cost, serving both local market needs and providing global competitive advantage", says Gary Marler, Country Manager, ABB Vietnam. He summed it up well, addressing the local team and complementing them on the success of the event. "This is a great accomplishment and a gem of a factory. Now we need to get orders and ensure it is fully loaded - it's time to deliver !".
