On January 30, South Korea’s KP Aero Industries, a supplier of components for Boeing and Airbus aircraft, conducted a breaking-ground ceremony for its $20-million plant in the central city of Da Nang.

The 2-ha plant, called the KP Vina Aircraft Component factory, is set for completion in September and will employ 500 people. Located at the Da Nang Hi-Tech Park, the factory will manufacture and assemble aircraft components, including APU doors, MIC tips, wingboxes, winglets, and flap supports for Boeing 787 and Boeing 737 MAX aircraft.

Speaking at the breaking-ground event, Deputy Chairman of the Da Nang City People’s Committee Tran Chi Cuong said the project is expected to bring massive benefits to investors and the city’s socio-economic growth. It also highlights the city’s consistent policy of cutting red tape to facilitate investment and business, especially by private enterprises.

Representatives from KP Aero Industries said they first dreamt of establishing an aviation component factory in Da Nang ten years ago. Thanks to enthusiastic support, along with professional investment attraction efforts from the city’s leadership, and outstanding human resources, the corporation decided to invest in the central city. “The challenges in operating an aviation component factory in Da Nang begin with this breaking of ground,” a representative said. “This is not an easy challenge, but with the companionship and support of the city, our dream will become a reality.”

Da Nang is looking to attract at least three investments worth at $200 million in total into its hi-tech park this year, focusing on aerospace-aviation, semiconductors, and high-quality healthcare, Mr. Cuong added.

City authorities granted an investment license to KP Aero Industries at an investment conference with the theme “Meet Da Nang 2024”. The investment is the second aviation project in the city. The first, also at the Da Nang Hi-Tech Park, is a $170 million investment from the US-based Universal Alloy Corporation (UAC), a component supplier to Boeing and Airbus. Entering operations in March 2020, the factory’s annual output is 12,470 tons of components.