Bosch Opens €30m CVT Push-Belt Plant in Vietnam
The new Dong Nai facility is Bosch’s first hi-tech CVT push-belt plant in Southeast Asia and will supply Asian automotive markets as demand for fuel-efficient transmissions grows.
Bosch has opened a €30 million high-tech manufacturing facility in Dong Nai Province, Vietnam, dedicated to producing push-belts for continuously variable transmissions (CVT). The plant, which began operations in April 2011, is the German supplier’s first CVT push-belt production site in Southeast Asia and only its second worldwide after Tilburg in the Netherlands.
Located in Long Thanh Industrial Park, the 160,000-square-metre plant is part of Bosch’s Gasoline Systems division. In its first year, the facility will produce up to 1.6 million push-belts, which are used in CVT systems fitted to a wide range of vehicles, from small cars to SUVs with petrol, diesel or hybrid powertrains.
Bosch expects to ramp up investment in the site to €55 million and expand the workforce to 800 by 2015. Production capacity is forecast to increase to 2.3 million units per year, reflecting strong demand in Asian automotive markets, particularly from Japanese and Chinese manufacturers. The plant launched with around 200 employees.
Supplying Asia’s demand for fuel-efficient transmissions
The Dong Nai facility will serve the growing market for CVT technology in Asia, where most of Bosch’s push-belt customers are located. CVTs are increasingly chosen for their ability to improve fuel efficiency and reduce CO2 emissions compared to traditional manual gearboxes. Bosch claims its CVT systems can deliver up to 15 percent lower fuel consumption and carbon emissions.
The push-belts produced in Vietnam will be fitted to vehicles built by a range of Asian automakers, supporting both regional assembly operations and exports. The plant’s output is intended for models with varied engine types, underlining the flexibility of CVT applications across different market segments.
Bosch’s growing presence in Asia
The Vietnamese plant’s opening comes as Bosch increases its focus on Asia-Pacific. In 2010, Bosch’s sales in the region rose by 43 percent to €11 billion, accounting for 23 percent of the group’s global turnover. The company plans to invest around €2 billion in Asia-Pacific between 2011 and 2013, including the new Vietnam plant and the opening of new headquarters in Shanghai.
Bosch’s expansion in Vietnam is part of a wider strategy to supply the region’s fast-growing automotive industry with advanced components and to develop a local workforce skilled in hi-tech manufacturing. Local authorities in Dong Nai have said they will support Bosch’s operations, expecting the company to maintain high product quality and environmental standards while investing in employee development.
