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Tatung to Begin Mass Production in Vietnam
Jun 26, 2006
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Tatung Co., a Taiwan-based appliance maker, will start production at its Vietnam plant in August, with an annual output capacity set at 300,000 medium- and small-sized refrigerators.

Tatung chairman Lin Wei-shan said the company invested U.S. $35 million in the Vietnam plant and that the products will be sold in Vietnam and sent as exports.

Koo Wen-yang, head of Tatung’s home-appliance business section, said the Vietnam plant would serve as the firm’s global production center. Koo noted the Vietnam plant would concentrate on the production of 400-L medium-sized and 120-L small-sized refrigerators. Koo said the Vietnam plant would add small-sized home appliances to its product lines in the future.

Initially, the Vietnam plant will focus on export markets such as the U.S., the Middle East and Southeast Asia. Tatung also plans to expand product lines of the plant to include heavy electric machinery, electric meters, and electric cables and wires. The company said its Panchiao plant in Taipei County, northern Taiwan, will concentrate on the production of large-sized refrigerators.

Tatung’s Panchiao plant currently produces refrigerator compressors with annual production capacity reaching 500,000 units, in addition to electric cookers and electric fans.The Panchiao plant currently employs 600-strong workers.

With the production of small-sized refrigerators switching to the Vietnam plant in August, Tatung believes its Panchiao plant would be able to cut operating losses substantially this year.

Meanwhile, Tatung has set up a plant for refrigerator compressors in Zhongshan, Guangdong Province of mainland China. To keep production costs down, the company has also set up a plant of electronic components and cast iron in Shanghai to facilitate the need of its motor plant in Sanhsia of Taipei County, northern Taiwan.

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