Japan valve producer Kitx to fire up $18 mln Vietnam subsidiary
The office of Kitz Valve & Actuation Vietnam in Ho Chi Minh City. Photo courtesy of the firm.
Its factory in the northern province of Vinh Phuc will manufacture and sell stainless steel valves from November 2024.
Kitz said the move aims to expand the corporation's manufacturing capacity of valves, ensure the stable supply, and avoid geopolitical risks with dispersed manufacturing bases, hence increasing the sales in the medium and long term.
In Vietnam, Kitz has offices in Ho Chi Minh City and one in Hanoi in charge of imports, exports, and distribution of valves, strainers, and filters.
Kitz Corporation recorded a record-high revenue of 159.9 billion yen ($1.19 billion) in 2022, up 17.8% year-on-year, thanks to 17.3% and 18.8% growth in sales of valves and brass bars, respectively, according to the firm’s performance report. Net income rose 5.3% to 8.55 billion yen ($63.87 million).
Notable Japanese businesses in Vinh Phuc are Honda, Toyota, Sumitomo, and Sojitz. The province attracted 70 FDI projects in 2022 with total registered capital of $462 million, according to provincial authorities.
As of February 20, Vinh Phuc attracted 504 FDI projects with total registered capital of $6.74 billion, ranking 16th among 63 cities and provinces in Vietnam, the Ministry of Planning and Investment reported.
Source: The Investor