Japan’s Sanyo Electric Co. said Friday its subsidiary in Vietnam will build a new plant and hire up to 12,000 workers as it steps up production of optical pickups for DVD recorders and other devices.
Construction of the factory in Bac Giang Province would begin next month, with operations expected to start in April next year, a company statement said.
‘We expect the total investment in the new firm to be around US$95 million,” said a spokeswoman for Sanyo, which already produces optical pickups in Japan, China and Indonesia.
The new firm operating the plant would have a capital of $10 million, Sanyo said, adding sales are expected to reach $300 million in 2012.
“With the growth of developing markets such as China and with the widespread use of next generation DVDs, Sanyo will gear up to expand its share in the ever-growing optical pickup business,” it said.
The new firm will be wholly controlled by Shenzhen Sanyo Huaqiang Optical Technology Co. of China, which is 60 percent owned by Sanyo, with the remaining 40 percent held by its Chinese partner.
Sanyo has slashed thousands of jobs and sold non-core operations as part of a massive overhaul in recent years, while increasing its focus on rechargeable batteries and environment-friendly technology.
The restructuring appears to be paying off, with Sanyo reporting in May its first annual net profit in four years.
Source: AFP
