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THACO inaugurates agricultural machinery manufacturing facility
2/23/2018 3:56:00 PM
Truong Hai Auto Corporation (THACO) organized the Grand Opening Ceremony for THACO Agricultural Machinery Manufacturing Plant with the designed annual capacity of 2,000 tractors  on February 21 at Chu Lai - Truong Hai Open Economic Zone, Quang Nam Province, central Vietnam.
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THACO in January 2017 started work on the USD22-million facility on an area of 12,500 square meters. The plant now supplies a wide range of tractors with capacity from 18-120 HP, including harvesters and other cultivation machines controlled by ISO - TS16949 quality system.
 
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In the first phase, the plant will annually produce 2,000 tractors, 3,000 cultivation machines, and 1,000 combine harvesters. The facility uses manufacturing technology transferred by LS Mtron - South Korea's biggest agricultural machine manufacturer, which holds 40% of the Korean market share and operates manufacturing plants in Brazil, China, etc…LS Mtron machines are used in more than 40 countries worldwide.
LS Mtron transfers its technology and provides training to THACO engineers in terms of increasing the regional value content (RVC) of the tractors' components to 50%. THACO will research and manufacture its own machines and equipment under LS Mtron's guidance, as well as importing South Korean's equipment including speed, lifting force, and power take-off (PTO) testing equipment.
 
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Regarding the manufacturing process, the localized components will be manufactured in THACO's support industry plants and Vietnamese plants. Meanwhile, the completely knocked down (CKD) components will be imported from South Korea. The completely assembled tractors will be tested on modern testing lines, including lifting force, speed, and PTO testing lines.

In terms of design, the plant applies NX Unigraphic 13.0 of Siemens (Germany), invests in the CAM Express which consists a wide range of machining solutions to maximize the production value of the localized tractors' components.
 
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Besides, the plant also invests in 3D printing, 3D scanning machines for the R&D activities, ensuring high quality and reliability for the tractors. The aim is to gradually master the manufacturing technology, increase the technological content, and manufacture high-quality tractors that are suitable to Vietnamese terrains and cultivation conditions. THACO expects its tractors to reach to 7% of Vietnamese market share in 2018(with 500 tractors to be sold), and 38% market share and 2,100 tractors by 2026.

In addition, the plant will continue its research on other agricultural machines to meet the Vietnamese and exports demands. The key export markets will be Laos, Cambodia, the Philippines, Myanmar, Indonesia, and LS Mtron's export markets. The plant will prioritize the available materials in Vietnam, cooperate with the Vietnamese enterprises to manufacture components, and then import other high-tech specialized components from South Korea and ASEAN.
 
This THACO plant will make significant contributions to the Vietnamese agriculture and machining industries, especially when agriculture still holds an important role in the Vietnamese economy. It will allow THACO to master the machine designing, manufacturing technology, and localization for the Vietnamese branded agricultural machines.

The plant also contributively creates employment for thousands of laborers in THACO's chain of agricultural industrialization and other related enterprises in the fields: export and import, transport, machining, plastic, rubber, and other industries. At the same time, other Vietnamese and international support industry plants will make their investments in Chu Lai Open Economic Zone.
THACOGROUP