Piaggio inaugurates new plant in Vinh Phuc

The new Piaggio Group engine plant officially made its debut in Binh Xuyen industrial park in the northern province of Vinh Phuc on March 1.

The plant will be put into operation in April and aims to increase its productivity from 140,000 to 300,000 engines per year. It is located next to the Piaggio Vietnam vehicle assembly plant, which produces Vespa, Liberty and Fly scooters.

The Group’s Chairman and Chief Executive Officer, Roberto Colaninno, said that the new factory will also produce a new global range of scooter engines with the lowest rate of fuel consumption in the world for vehicle assembly in Italy, Vietnam and India.

As scheduled, in the 2012-2014 period, Piaggio Group in Vietnam will invest EUR70 million in newly-emerging markets to increase the number of scooters to 1 million. Piaggio expects that Asia will make up 50 percent of the group’s total revenue in 2014, compared to 8 percent in 2003 and 25 percent in 2009.

Piaggio Vietnam’s vehicle assembly plant began operations in Vietnam in June 2009 and has launched 180,000 scooters in the market so far. It also helps the Group penetrate new markets in South East Asia, especially Indonesia, Thailand, Taiwan and Malaysia.