Tokyo Rope Launched Vietnam Elevator Rope Plant

Tokyo based major steel wire rope maker, Tokyo Rope Manufacturing held opening ceremony for Vietnamese wire rope making subsidiary, Tokyo Rope Vietnam on Friday. The third offshore plant for the firm makes high grade elevator rope to supply to China and Southeast Asia. The new plant expands the output to annual 6,000 tonnes in 2 years from start of 2,400 tonnes. The firm plans to expand the operation to 36,000 tonnes for 1 billion yen establishing export base for Asia and Europe. Tokyo Rope makes annual 7,000 tonnes of wire rope or around 60% of Japanese market. The firm established Vietnamese subsidiary with US$ 6 million of capital in June 2006 and built the plant for US$ 18 million to meet demand from local transplants of Japanese users. The firm transfers the high level technology for production and quality control as Japan to the new plant in Vietnam Singapore Industrial Park, Binh Duong, which is 32 kilometers north of Ho Chi Minh. The new plant supplies high grade products to elevator makers in Southeast Asia and China. The plant will expand the land space from current 30,000 square meters to 70,000 square meters for integrated wire rope production base to cover elevator rope to crane rope. Major elevator makers of Japan, US and Europe expand the Chinese operation to meet growing local demand under construction boom. Chinese demand surges for high grade wire rope for high speed elevator. Tokyo Rope decided to launch Vietnamese plant due to the better location to ship to China and Asia, favorable incentive and infrastructure support. Tokyo Rope launched steel wire for bridge maker, Jiangsu ShuangYou Tokyo Rope in 2004 and steel tire code maker, Toyo Rope (Changzhou) in 2006. With the Vietnamese plant, the firm has 3 plants to serve construction, machinery and automobile industry.