Press Release
Schaeffler to expand manufacturing footprint in Vietnam
- Investment of 55 million Euros in Phase 1 to create 250 jobs by 2019
- New Schaeffler Vietnam plant to be built on 100,000 sq. m. plot
- First local production of Needle Roller Bearings and range extension of Radial Insert Ball Bearings (RIBB) for industrial customers
Sand scooping by Schaeffler management and invited guests
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DONG NAI PROVINCE / HO CHI MINH CITY, November 3, 2017. Schaeffler, the leading global automotive and industrial technology group, is continuing with the strategic expansion of its footprint in Asia Pacific with an investment of 55 million Euros to build a new Greenfield plant in Vietnam that will significantly increase the local manufacturing capacity. The company had organized a ground breaking ceremony for the new Schaeffler Vietnam plant on November 3, 2017. The investment is expected to generate 250 jobs in Dong Nai province by the end of 2019.
“The investment reinforces our long-term commitment to this region as this helps us to better serve our customers with a wider local range of our high-quality industrial products. This is the second Schaeffler-owned plant in South East Asia and it has always been part of our vision for Vietnam to further strengthen our operational and technology footprint,” says Mr. Andreas Schick, Chief Executive Officer at Schaeffler Asia Pacific. “We see tremendous potential in Vietnam due to the high standards of technical education, excellent work ethic of employees and great enthusiasm for manufacturing,” added Mr. Schick.
Equipped with Schaeffler’s advanced manufacturing technology, the new plant will replace the existing production facility that was set up on a leased land over 10 years ago. “With the new investment, we are significantly expanding the existing product range of Radial Insert Ball Bearings (RIBB) by transferring the entire global production responsibility to Vietnam. We will also set up a new product line for needle roller bearings (NRB), which is the flagship product range of Schaeffler Group,” says Mr. Helmut Bode, President Industrial at Schaeffler Asia Pacific. “With the localization of these standard product ranges we will be able to further increase our contribution to the development of the industrial sector in South East Asia,” he adds.
The RIBB range offers benefits like easy mounting, smooth running and high reliability in supporting moderate to high radial and axial loads. Typical applications of these bearings are in agricultural, construction and mining equipment; food processing machinery; process industries like textile, paper, steel as well as packaging. The NRB range offers sophisticated, high-precision products for a variety of applications across industries as well as the automotive sector, including motorcycles.
As a global automobile and industrial supplier, Schaeffler offers relevant solutions for shaping the "Mobility for tomorrow". The Industrial division offers everything from mechanical components to cloud-based services across the entire energy value chain.
With a closely integrated global network of manufacturing plants, technology centers and R&D facilities, Schaeffler utilizes its broad technological know-how and expertise to be the local development partner and solution provider for customers in each market.
The new plant, located at the Amata IZ Expanded in Bien Hoa City, is being developed on a modular concept on a 100,000 sq. m. plot. The annual production capacity will be 15 million pieces on completion of Phase I, which will cover half of the area. Construction of the first phase is expected to complete in Q4 of 2018 whereas Phase II, with more product lines from Schaeffler’s wide portfolio of industrial applications, is likely to commence in 2022 over the remaining 50,000 sq. m.
3D rendering of Phase 1 of the Schaeffler Vietnam plant
Radial Insert Ball Bearings (RIBB) – Complete range of RIBB products to be manufactured in the new Schaeffler Vietnam plant
Needle Roller Bearing (NRB) – The flagship product of Schaeffler will also be localized in the new plant
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About Schaeffler
The Schaeffler Group is a global automotive and industrial supplier. Top quality, outstanding technology, and exceptionally innovative spirit form the basis for the continued success of the company. By delivering high-precision components and systems in engine, transmission, and chassis applications, as well as rolling and plain bearing solutions for a large number of industrial applications, the Schaeffler Group is already shaping “Mobility for tomorrow” to a significant degree. The technology company generated sales of approximately EUR 13.3 billion in 2016. With around 87,900 employees, Schaeffler is one of the world’s largest family companies and, with approximately 170 locations in over 50 countries, has a worldwide network of manufacturing locations, research and development facilities, and sales companies.
Schaeffler Asia Pacific
Schaeffler Group operations in Korea, Japan and the countries in South East Asia-Pacific represent the Asia Pacific (AP) region which is managed from the regional headquarters in Singapore. With 7 manufacturing locations and research and development facilities at 5 locations, the AP organization ensures that customers in the Automotive and Industrial divisions are served rapidly with applications specific to their needs. Schaeffler is actively strengthening the local manufacturing and engineering footprint in the AP region to meet the growing customer requirements of localization and application development.