CPG NEWS - Piaggio Opens Subsidiary In Vietnam

Posted Jul 7/2009

Piaggio & C. S.p.a. last week formally opened its subsidiary in Vietnam to produce the 125cc and 150cc Vespa LX. Piaggio Vietnam Ltd. is based in the Binh Xuyen Industrial Park (province of Vinh Phuc). The facility, to employ 250 workers, was built on a surface area of more than 135,000 square meters and equipped in less than two years at an overall investment of more than $30 million. When fully operational, the facility will have an annual production capacity of 100,000 vehicles and handle all welding, painting, final assembly, testing and quality control processes.

Piaggio expects to sell approximately 15,000 units in Vietnam during the second half of 2009. Costantino Sambuy, formerly the chief executive and president of Piaggio USA, serves as the CEO and COO of Piaggio Vietnam Ltd. as well as market manager for Piaggio's two-wheel business in Asia. The Piaggio Group now operates facilities in Italy, Spain, India, China and Vietnam.

"After establishing a presence in India and China, with the marketing start-up of Vespa scooters produced in Vietnam, Piaggio now completes its strategic investment plan in Asia, taking a new step of the greatest importance toward the globalization of its production operations," says Piaggio Group Chairman and CEO Roberto Colaninno.

The Piaggio Group owns the Piaggio, Vespa, Gilera, Aprilia, Moto Guzzi, Derbi and Scarabeo brands, and is active in the three- and four-wheel light transport sector with the Ape, Porter and Quargo commercial vehicle ranges. In 2008 the Piaggio Group sold a total of 648,600 vehicles worldwide, of which 470,500 units were two-wheelers and 178,100 were commercial vehicles.

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