Business News 03/11/2023, 14:10

Geleximco to build automobile manufacturing and assembly factory

On November 2 in Thai Binh, Geleximco Group and Omoda & Jaecoo Automobile Co., Ltd. signed a principal contract to cooperate in building an automobile manufacturing and assembly factory.

Geleximco to build automobile manufacturing and assembly factory

The goal of the project is to invest in the production and assembly of cars for domestic consumption and export, including cars using gasoline, plug-in hybrid electric (PHEV), and pure electric cars.

The factory is built in the Hung Phu Industrial Park, Thai Binh Province Economic Zone. With a green standard design and the use of advanced technology, the factory produces a series of electric cars, from mid-range to luxury segments. The use of renewable energy and sustainable production processes will help minimize impact on the environment and produce safe, high-performance, and environmentally friendly cars.

The investment scale will be divided into 3 phases. Phase 1 from 2023-2030. In this phase, the group invests in building an automobile manufacturing and assembly plant with a scale of 50,000 cars/year and essential auxiliary works to serve production, such as test track, parking lot, operating room, housing for officials and employees, green landscape system, water supply and sewerage, and sewer treatment system, power supply system, and fire prevention and fighting system, etc., to ensure that the project can be put into operation immediately after completing the construction investment.

Phase 2 of the project is from 2031 to 2033. After production and business activities become stable, an additional production line of 50,000 cars/year is invested to increase the capacity of the automobile manufacturing and assembly plant to 100,000 cars/year; invest in a 50-hectare auxiliary industrial park to attract partners to produce components and auto parts to meet the 40% localization rate for export; upgrade and complete the landscape system of the entire project.

In phase 3 (2034-2035), the group will invest in an additional production line of 100,000 cars/year to increase the total capacity of the factory to 200,000 cars/year and in expanding the auxiliary industrial park by 50 hectares to increase the localization rate to over 60%.

The total investment capital for 3 phases of the joint venture automobile manufacturing and assembly project in Thai Binh province by Geleximco Group, when reaching a capacity of 200,000 cars/year, excluding investment in auxiliary industrial parks, is estimated at about 800 million USD.

The total land demand for factory construction is expected to be about 100 hectares to meet the production scale of 200,000 cars/year and 100 hectares to develop auxiliary industrial parks to serve domestication needs for export.

It is expected that Geleximco Group will start phase 1 in the second quarter of 2024, complete investment in factory construction phase 1 in the third quarter of 2025, and launch products in Vietnam in the fourth quarter of 2025.

The joint venture automobile manufacturing and assembly project of Geleximco Group, when put into operation, is expected to make positive contributions to the economic and social development of Thai Binh province.

Geleximco Group, formerly known as Hanoi General Import and Export Co., Ltd., was established in 1993 with an initial charter capital of 3 billion VND. To date, Geleximco has become a strong private economic group, with equity capital of 14,500 billion VND; total assets of 52,000 billion VND, creating stable jobs for more than 10,000 workers.

The fields of operation of Geleximco Group include industrial production, real estate, finance - banking, and trade - services. In which, industrial production is one of the top priority fields of the group.

Vietnamnet / Translator: Hoàng Trúc

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