16:26 (GMT +7) - Thursday 19/07/2018

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ESMO begins construction of first wiring harness facility

Released at: 10:43, 09/07/2018

ESMO begins construction of first wiring harness facility

Photo: ESMO VINA

Company breaks ground at first wiring harness production plant in Vietnam.

by Hong Nhung

The ESMO Group (formerly NEXEN TECH) has begun construction of ESMO VINA, its first wiring harness factory in Vietnam, at the Gia Phu Industrial Zone in northern Ninh Binh province.

Covering an area of 64 ha and with total investment of around $31 million, the facility is expected to create some 2,000 jobs.

It will improve ESMO’s production capacity to meet demand from new orders while enhancing its competitiveness through the systematic production of specialized parts for hybrid and electric vehicles. Its key product line is wiring harnesses, the company’s flagship product, with a production volume of about 450,000 products per year and which are used in large and small buses, as well as battery module harnesses (battery module systems), an electric vehicle charger cable, with an eye on the expected explosion of hybrid electric vehicles from 2020.

In the context of international agreements on emissions reductions that are being implemented to fight climate change, reducing vehicle emissions is now an important task for automobile manufacturers. Electric vehicles and hybrid vehicles are becoming increasingly popular, leading to the development of a corresponding parts industry in which ESMO is one of the pioneers.

Based on its long-standing manufacturing experience and its team of high-quality local and international engineers, ESMO is expected to contribute to promoting economic growth in Ninh Binh in particular and Vietnam in general. The 2,000 jobs created will not only help upskill the local workforce but also enhance local competitiveness.

ESMO is currently operating two manufacturing facilities (GoHyeon and RaeSeo) in Qingdao, China. In order to realize its goal of expanding its business scale to Southeast Asia, ESMO has recently established the Global Land Vina Co. in Vietnam in addition to building this third facility. The company also plans to increase product volumes for automakers in Southeast Asia that are growing rapidly.

Last March, NEXEN TECH (now ESMO) partnered with UK business Volex, which is expanding its business network with wiring harnesses, including the exclusive supply of Tesla Model 3 rechargeable cables (used in electric vehicles developed by Tesla Motors and equipment from Dyson UK), which are expected to be launched by the end of this year.

NEXEN TECH was renamed ESMO in early May.

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