German automotive supplier Bosch has opened a hi-tech facility to produce car parts in southern Vietnam.
The plant, opened on Thursday, is developed by Bosch Group's Gasoline Systems division on an area of 160,000 square meters in Dong Nai Province.
It is expected to produce up to 1.6 million push belts in its first year for fuel-efficient continuously variable transmissions (CVTs) in automobiles. The parts can be used for vehicles ranging from sub-compact cars to sports utility vehicles with diesel, gasoline or hybrid engines.
Bosch has invested some 30 million euros (US$43 million) in the plant, and plans to increase this to 55 million euros by 2015.
"With the majority of our customers for CVT technology located in Asia, we expect our production volume in the new facility to rise to 2.3 million units by 2015 to support the growth of the automobile industry, in particular for the Japanese and Chinese automotive markets," Rolf Bulander, President of the Bosch Group's Gasoline Systems division, said in a statement.
Bosch said CVTs feature maximum gear-shift sophistication and contribute to reduced fuel consumption. The technology can cut carbon dioxide emissions by up to 15 percent, the company said.