Dyson picks Singapore for its new electric car factory 

Key Points
  • Dyson already assembles products in Malaysia, the Philippines and Singapore.
  • Known for its sleekly-designed vacuum cleaners, Dyson has been working on an electric vehicle for several years.
  • Dyson say the vehicle is "on track" for a 2021 launch. 
Jonathan Chiang/Scintt | Moment | Getty Images

U.K. technology business Dyson is to build its electric cars in Singapore, with construction of a manufacturing facility to begin in December.

In a statement Tuesday, the company said the purpose built, two-storey facility in the southeast Asian city state was scheduled for completion in 2020, with the electric vehicle "on track" for a 2021 launch.

In a message to staff, Dyson CEO Jim Rowan said that the decision of where to make the electric vehicle was based on supply chains and access to markets as well as "the availability of the expertise that will help us achieve our ambitions."

Rowan added that Singapore offered access to "high-growth markets as well as an extensive supply chain and a highly skilled workforce." The company currently employs a team of 1,100 people in Singapore.

While the decision to build its electric car in Singapore may seem counter-intuitive given that Dyson's founder, James Dyson, is a vocal supporter of Brexit, the company has a global presence and already assembles products in Malaysia, the Philippines and Singapore.

Jonathan Owens, a lecturer in operations management at the University of Salford Business School, said in a statement that, in many ways, it was not surprising that Dyson had chosen Singapore as a production base for its electric vehicle. "Dyson sees Singapore as a base closer to their target market: Asia Pacific."

Securing the talent required to produce the new electric vehicle, as well as shorter and established supply chains, were other reasons for choosing Singapore, Owens added.

Known for its sleekly-designed vacuum cleaners, Dyson has been working on a battery-electric vehicle for several years.

At the end of August, the company released details of plans for electric vehicle testing tracks at a former airfield in Wiltshire, England.

Dyson said at the time it had already invested £84 million ($109.3 million) in its new technology center at Hullavington Airfield. Two hangars, built in 1938, have been converted into engineering work spaces. The second phase of the company's plans would see its investment rise to £200 million.

The planning application for the second phase of development includes more than 10 miles of test tracks for electric vehicle development and verification.