Hong Kong-based Techtronic Industries (TTI) is to invest $650 million in a cordless power equipment plant in Ho Chi Minh City Saigon High-tech Park (SHTP) – one of Vietnam’s fastest-growing R&D and technology hubs and a future Silicon Valley.
SHTP was also chosen for setting up the second-largest plant and R&D centre of the global network of TTI.
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.
According to Nate Easter, executive vice president of Global Sourcing & Outdoor Products Operation from TTI, the investment in Vietnam is a key part of TTI’s strategy to develop innovative, industry-leading, high-tech products and support its rapid global growth.
TTI expects to have an annual production value of $1.5 billion by the third year and achieve up to $3 billion by the sixth year. It also targets $1 billion in annual localised supply and expects to increase local suppliers from 80 to 150 products.
“We are proud to receive 10 hectares of prime land for our state-of-the-art production facilities as well as 3.7ha in SHTP for our Research and Development Innovation Centre,” Easter told VIR.
TTI is among the fastest-growing world leader in branded cordless power tools and outdoor products for the consumer, professional, and industrial market segments.
“This innovative array of high-tech products and technology has allowed us to rapidly grow our cordless tool market share over the years. Our continued and growing investments in these advanced technologies are a key reason we are confident that this rapid growth will continue into the foreseeable future,” Easter said.
Meanwhile, Stephan Pudwill, vice chairman, group executive director, said that TTI chose SHTP for its first plant in Vietnam because its strategic location (in proximity of Ho Chi Minh City, leading universities, and outstanding logistical connectivity and infrastructure), favourable access to a vast pool of talent including R&D engineers and skilled labour, access to high-quality suppliers and strong commitment from the government and public administration who have been very supportive of TTI’s current and future development plans at SHTP.
Vietnam is very attractive for TTI due to its deep integration into the global market with its recent FTAs signed, especially the EVFTA.
TTI’s goal is to localise a majority of the supply chain, if possible.
Founded in 1985 TTI is a fast-growing world leader in power tools, accessories, hand tools, outdoor power equipment, and floor care cleaning products and appliances for do-it-yourself (DIY), professional, and industrial users in the home improvement, repair, maintenance, construction, and infrastructure industries.
TTI has so far operations in over 40 countries and regions, including the United States, Canada, Latin America, Europe, the Middle East, Africa, China, South Korea, Southeast Asia, Australia, and New Zealand.