Camso expands manufacturing in Vietnam

Vietnam: As per the executives of Camso, the company has established and inaugurated its manufacturing plant in Bin Duong province, Vietnam, with the purpose of production of forklift tires. The construction of the plant has been completed in 14 months in approximately 247,500 sq. ft. area, and employs a workforce of 160 people. However, the investment of the company for the establishment of the facility, and its production capacity remains undisclosed for some reasons.

As per the Vice President and General Manager- Mr. Jean-François Ferland, the new facility has been established to improve company’s relations with its OEM partners as well as aftermarket customers in Asian markets. The company has made an investment to grow its leadership position in material-handling sector, he added further.

The company considers the manufacturing plant an ideal location to diversify its manufacturing operations and improve its competitiveness, as Binh Duong province is close to Ho Chi Minh city and Vietnam has abundant rubber resources, with other factors including competitive quality labour and favourable industrial economic environment.

The company is already a prominent player in industrial tire segment, and has 3 other plants in Asia and 9 others across the world. By the help of this facility, the company aims to improve its position in the market.

According to a recent report published by Techsci Research, “Vietnam Tyre Market Forecast and Opportunities, 2020”, Vietnam is a developing country with a population of 91 million in 2014, and has emerged as a major market of automotive tires over the last five years. Further the country is witnessing growing fleet of vehicles and increasing demand of OTR tires. In addition, the country has vast resources of rubber, which makes the country an ideal destination for establishing tire manufacturing plants in the country.

As per TechSci Research, Camso’s decision of opening a manufacturing plant in Vietnam is strategically sound, as it will help the company to strengthen its position in Asian markets, to gain a competitive advantage over other players in this segment.