$650 million TTI project six months behind schedule
$650 million TTI project six months behind schedule
The $650 million project invested by global cordless power equipment and floor care company Techtronic Industries Co., Ltd. (TTI) is six months behind schedule to start construction as foreign experts are restricted from entering the country due to COVID-19.
Talking with VIR, Le Bich Loan, deputy director of the Management Board of Ho Chi Minh City High-Tech Park (SHTP) confirmed that up to now, TTI Group's $650 million project has not started construction. Compared to the original plan this is a delay of about half a year.
Although the project has not officially started construction yet, Loan said the foreign investors are working closely with SHTP through online meetings.
In March, VIR has contacted both TTI representatives in Hong Kong and Vietnam to ask about the progress of the project. In the latest email from TTI's Hong Kong operations, the company media representative said that VIR’s queries would be met by April.
According to Loan, so far, TTI has been implementing procedures such as land leasing taxation, the environment impact report, basic design appraisal, and submitted a proposal for a construction licence.
“This is a big project which requires careful preparation to start construction. The investor announced that there was a delegation of experts from the US coming to Vietnam to implement the work. However, due to COVID-19, these plans were changed many times,” said Loan.
TTI Group's facility in Ho Chi Minh City would be one of the largest in its global ecosystem
|
Covering an area of 13.5 hectares, the plant will focus on manufacturing hand-held cordless power tools and outdoor power equipment while being at the forefront of Lithium-Ion batteries, digitally controlled motors, digitally connected tools, and industry-disrupting cordless applications.
TTI's local facility was reported to be the second-largest plant and research and development (R&D) centre in the global network of TTI.
In the investment certificate, TTI committed to begin the construction within the third quarter of 2020. The project was expected to finish construction and start operation in the first quarter of 2022.
TTI’s factory received high appreciation and expectation from Vietnam as it meets three major factors for attracting foreign investment into Vietnam. This is a high-tech project with an R&D centre and would collaborate with Vietnamese enterprises and manufacturers to create a local supply chain.
In 2020, TTI also held a supplier workshop to advance its presence and find local suppliers in Vietnam.
TTI plans to set up a network of around 200 enterprises to supply its factories in Vietnam and reach the annual revenue target of $2.5 billion with a localisation rate of 60-80 per cent in the future.
