Yamaha Motor Co., Ltd. has announced that it will establish a new company in Hanoi, Vietnam, to produce engine parts for motorcycles. The Vietnamese government granted approval for the company's establishment on January 4, 2005. Construction will begin in February 2005, and operations are scheduled to begin in January 2006.
The new company, called Yamaha Motor Parts Manufacturing Vietnam Co., Ltd. (YPMV), will be capitalized at US$14.3 million (approx. 1.5 billion yen), and will be a 100% subsidiary of Yamaha Motor Co., Ltd. A new plant, with a total building area of 20,400m2, will be constructed on a site measuring 100,000m2. The plant is expected to have an annual production capacity of one million die-cast motorcycle engine parts, including cylinder heads, and 900,000 steel parts, such as gears and transmissions. When the company is first established, it will have 540 employees, and the business plan for the first year of operations calls for sales of US$20 million (2.1 billion yen).
Cylinder heads, cylinder bodies, and other aluminum die-cast engine parts will be supplied to Yamaha Motor Vietnam Co., Ltd. (YMVN; President: Takahiko Takeda; location: Hanoi), Yamaha Motor's motorcycle production and sales base in Vietnam, and will also be exported to Japan. Transmissions, gears, and other steel parts will be supplied to Yamaha Motor Vietnam.
Yamaha Motor made the decision to establish Yamaha Motor Parts Manufacturing Vietnam in response to the dramatic increase in motorcycle production at Yamaha Motor Vietnam, as well as the increased production of die-cast parts within Japan. This will be the third die-cast parts manufacturing company to be established by Yamaha Motor in Asia, as two similar operations are already in place in Indonesia and Thailand. By establishing this new company in Vietnam, however, YMC will ensure a rapid and stable supply of high-quality, internationally competitive die-cast parts to both Vietnam and Japan.