Jabil doubles down in Vietnam

ST. PETERSBURG -- Jabil Circuit Inc. is expanding its operations in Vietnam, signing an initial agreement with Saigon Hi-Tech Park to grow its Asian operations there.

Jabil will break ground on a new facility in Vietnam in 2017 that will focus on high-volume production of computing, storage, networking, telecommunications, automotive and other services, according to a release. The facility will occupy up to one million square feet, and potentially add 3,000 jobs.

The St. Petersburg-based technology manufacturer currently operates out of 300,000 square feet in Vietnam, employing 2,600 people, according to the release. Jabil has been in Vietnam since 2007, and has grown 50% year-over-year for the past five years there.

Saigon Hi-Tech Park is a state-owned industrial park about 9 miles outside of Ho Chi Minh City. It provides tax incentives and “reasonable” land lease costs in an effort to attract technology companies like Jabil. More than two dozen companies are located in the park, including Intel Corp.

Jabil has 90 facilities in 24 countries, and 180,000 employees worldwide. Jabil trades on the New York Stock Exchange under the symbol JBL. It reported a $72.2 million, or 37 cents per share, profit for the quarter ended May 31 on revenues of $4.4 billion. That compares to a $188.3 million, or 93 cents per share, profit the year before on revenues of $3.8 billion.

Jabil plans to spend between $800 million and $900 million over the next 12 months, primarily for expansion in Asia and infrastructure, according to public filings.