Japanese trading giant Sumitomo Corp. has established a wholly owned subsidiary in Hanoi, Vietnam to provide electronics manufacturing services to companies that have shifted production from China to Vietnam due to the ongoing trade row between Washington and Beijing. Sumitronics Vietnam Co. was established in August by its Tokyo-based arm, Sumitronics Corp., with operations set to being in the fourth quarter of this year.
The new company anticipates is targeting sales of $90 million USD a year on demand for electronics manufacturing services (EMS) from producers of office automation equipment, white goods, car-mounted devices and other products. Sumitronics has a network of more than 20 partner manufacturers and over 1,000 parts suppliers.
Sumitomo entered the EMS market in the 1990’s, with Sumitronics operating 10 locations in eight countries besides Vietnam and the parent company running four of its own factories in Cambodia, Indonesia, Mexico and Thailand.