The factory was initially invested in January 2017 on the area of 12,500 square meters and has the total investment of VND500 billion (US$22 million). The factory will manufacture agricultural tractors with a capacity of 18HP - 120HP, harvesters and farming equipment for agriculture under the ISO - TS16949 quality management system.
In phase 1, the factory will have a design capacity of 2,000 tractors per year, 3,000 cultivators and 1,000 combine harvesters.
The factory’s technology is transferred by Korea-based LS Mtron Company, the globally famous brand of agricultural machinery with the largest market shares in Korea. LS Mtron has established the business systems in the US and manufacturing factories in China and Brazil and exported tractors to more than 40 countries worldwide.
Localized components will be produced by THACO's supporting industrial factories and domestic manufacturers while completely-knocked-down (CKD) components will be imported from Korea. Completely-assembled tractors will be tested regarding lifting, speed and power take-off (PTO) on state-of-the-art production lines.
The factory’s goals are to step by step master the production technology, improve technology content and manufacture the high-quality tractors that are suitable to the terrain and cultivation conditions in Vietnam.
The tractors will be marketed domestically with a target of 500 tractors (seven per cent market share) this year and 2,100 tractors (38 per cent of market share) by 2026. Furthermore, other agricultural types of machinery will be researched and developed at the factory to meet domestic demand and export.
The factory will prioritize the use of domestic materials available in Vietnam, cooperate with local manufacturers to produce localized components and import hi-tech components, which cannot be produced domestically, from Korea and ASEAN countries.
The factory will actively contribute to the development of agriculture in Vietnam and mechanical engineering, especially in the context that Vietnam's agricultural sector is still playing an important role in the economy. It will also contribute to creating jobs for thousands of local workers.