The Trường Hải Automobile Company (Thaco) and Korean LS Mtron company inked an agreement on co-operation in agricultural machinery manufacturing and distribution in Việt Nam and abroad, starting in October 2017.

It’s another milestone for the local carmaker from Quảng Nam Province in further diversifying production. Thaco has already manufactured and distributed vehicles of three foreign brands - Kia of South Korea, Mazda of Japan and France’s Peugeot.

Under the agreement, Thaco will be the exclusive agent of LS Group’s farming machinery distribution and production in Việt Nam under its own trademark.

The two sides agreed a 50-per cent localisation programme for agricultural machinery manufactured in Việt Nam in order to boost exports to ASEAN markets.

“The co-operation between Thaco and LS Mtron under LS Group in Korea will help speed up mechanisation of farming in Việt Nam, and create a value chain in the agricultural machinery industry,” said Thaco’s chairman, Trần Bá Dương.

Ja-Eun Koo, vice president of LS Group, said LS Group already has two LS cable and system factories in Đồng Nai and Hải Phòng, and LS Mtron’s electronic components factory in Bắc Ninh province.

He said LS Mtron, which is among LS Group affiliates, specilises in industrial machinery and high-end components, and the co-operation with Thaco will turn it into a leading ASEAN producer.

The Quảng Nam-based automobile maker acquired 51 per cent of shares in the Korean Soosung Motor Technology company to produce cranes, concrete mixer trucks and tankers in Korea in 2013.

Thaco started construction of an expansion of the Trường Hải-Chu Lai Mechanical Automobile Industrial Zone with an investment of $35.3 million last year.

It also began the operation of a new production line of trailers and special purpose vehicles in 2016, and started exporting to South America.

Source:
courtesy of VIET NAM NEWS

by Viet Nam News

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