Ford investing $82 million to expand Vietnam plant | Calamatta Cuschieri

Market summary

Maltese market closed in green on Tuesday, with MSE total index ending the session 0.199% higher to 9,497.704 points. Best performer was GlobalCapital plc with 7.14% surge to close at 0.30, followed by 2.70% gain of Simonds Farsons Cisk plc with closing price 11.40. Malta Properties Company plc and PG plc also closed on a positive note by adding 0.80% and 1.10% to close at 0.63 and 1.84 respectively. Biggest and only one fall was seen from Bank of Valletta plc, it slid 0.47% to close at 1.06.

European stocks finished the session slightly higher, helped by a positive start to the US results season, even as investors fretted that another trade spat might be brewing in the background - but this time centred on Europe. By the end of trading, the benchmark Stoxx 600 was up by 0.29% to 419.80, alongside an advance of 0.04% for the German Dax to 13,456.49.

US stocks turned in a mixed performance on Tuesday as a slew of earnings from some of the country's biggest lenders began to roll in. At the close, the Dow Jones Industrial Average was up 0.11% at 28,939.67, while the S&P 500 was 0.15% weaker at 3,283.15 and the Nasdaq Composite saw out the session 0.24% softer at 9,251.33.

Ford Motor Co. said on Tuesday it is investing $82 million to expand its plant in northern Vietnam to boost production capacity.

Ford Vietnam, established in 1995, said the expanded factory would boost the U.S. automaker's annual production capacity in Vietnam to 40,000 vehicles from current volume of 14,000 units.

The company reported it sold 32,175 vehicles in Vietnam in 2019, up 31 percent from a year earlier.

The expansion, which will bring the company's total investments in Vietnam to more than $200 million, will come in two stages over a two-year period starting this year.

“With this additional investment, Ford Motor Company is expressing our continued confidence in the future of Vietnam’s auto industry, as well as underscoring our commitment to the market and to meeting the increasing demand for Ford vehicles in Vietnam,” said Andreá Cavallaro, operations director for Ford’s International Markets Group.

Deputy Trade Minister Do Than Hai said he expected the expansion would reduce Vietnam's reliance on imported vehicles and therefore lower the country's trade deficit.

The construction will expand the facility across an additional 15 acres of land, bringing the total area to about 56 acres.

 

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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