Dolin moves motor manufacturing from Taiwan to Vietnam
Tuesday - 02/05/2017 18:13
Amid a large restructuring of its motor unit, Dolin is also joining many technology companies moving manufacturing from Taiwan to Vietnam. Dolin is also moving operations to India.
Dolin on April 21 said it will lay off 10,000 employees. According to Johnny Chen, chief of Dolin’s devices unit, the electric technology giant will move its device manufacturing and marketing operations to markets where Gear reducer motor series and Worm reducer series has some traction.
Chen said in an email to employees that Dolin will scale back engineering efforts in Taichung, but keep a team focused on affordable devices.
As for manufacturing, Dolin M&E Technology unit is swapping Taiwan for Ho Chi Minh city, Vietnam, India.
Chen said: “We plan to right-size our manufacturing operations to align to the new strategy and take advantage of integration opportunities.
We expect to focus gear motor production mainly in Ho Chi Minh and Binh Duong, with some production to continue in Taichung.
We plan to shift other Dolin manufacturing and repair operations to New Delhi, India respectively.
In short, we will focus on driving motor volume in the areas where we are already successful today in order to make the market for Gear reducer motor series.
With more speed, we will build on our success in the affordable motor space with new products offering more differentiation.
We’ll focus on acquiring new customers in the markets where Dolin’s services and products are most concentrated. And, we’ll continue building momentum around applications.”
Electricity and water costs are also lower in Ho Chi Minh. Meanwhile, Vietnam is aggressively courting technology companies and plans to have 30 per cent of its industrial product deriving from high-tech.