Doosan Corp. has joined hands with Hai Duong, an industrial city east of Vietnam's capital Hanoi, seeking further business opportunities based on its manufacturing techniques for advanced electronic materials, the South Korean conglomerate said Sunday.
Doosan Corp. and the city of Hai Duong signed a memorandum of understanding last week in Hanoi with government and company officials in attendance, which took place as part of events celebrating South Korean President Yoon Suk Yeol’s state visit to Vietnam.
Under the agreement, Doosan will expand the production capacity of its patterned flat cable, or PFC, manufacturing facility in the Vietnamese city and contribute to the local economy, while the city government has pledged to offer diverse incentives including tax cuts.
Doosan established its Vietnamese unit in 2020 and built the plant for mass-producing PFCs in Hai Duong in October 2022.
PFC is considered a next-generation electronics material to replace copper wire, or wiring harness, which is essential for the electric vehicle industry, from batteries to doors, seats and roof cables.
PFCs can reduce the size and weight of copper wire used for EVs by 80 percent, which will help reduce production costs while increasing driving distances, Doosan said.
“We could manage to establish the production line in Vietnam thanks to our local employees sticking together at a time we were struggling with the COVID-19 situation which broke out right after founding our corporation (in Vietnam)," said Yoo Seung-woo, president of Doosan Corp. Electro-Materials.
"Expecting high growth in the next-generation mobility sector, we will secure the business competitiveness in PFCs with Hai Duong City."