Logo of Phnom Penh Post newspaper Phnom Penh Post - Auto parts firm Denso bets $19 million on plant

Auto parts firm Denso bets $19 million on plant

Auto parts firm Denso bets $19 million on plant

In a bid to ramp up vehicle production in ASEAN. auto parts manufacturer Denso Cambodia has announced the construction of a new $19 million plant in the Phnom Penh Special Economic Zone.

The facility will produce magnetos and oil coolers with production slated to begin in March 2016, according to a Friday press release.

“The new plant, which is located in the Phnom Penh Special Economic Zone where DENSO Cambodia Co, Ltd. operates its existing plant, will support the increasing vehicle production in the ASEAN region,” the press release stated.

Denso Cambodia is a subsidiary of Japan-based Denso Corporation, a global automotive supplier with 200 subsidiaries in 35 countries.

Seng Chanthy, administrative manager at Denso Cambodia, told the Post in October that the company’s existing plant has been producing sensor components for ignition devices and shipping them back to Denso Thailand, where they are assembled into bigger automobile parts.

Denso Cambodia registered its $10 million investment in Cambodia in March 2013 and has been renting space in PPSEZ since July of that year.

Denso is not the first Japanese manufacturer in Cambodia which provides basic parts to be assembled in neighbouring countries.

Minebea, a Japanese electronics manufacturer, opened a $60-million plant in PPSEZ in 2011 to produce micro actuators, power brushless motors, and other parts for plants outside the Kingdom.

Pily Wong, vice president of the Cambodian Automotive Industry Federation and CEO of Hung Hiep (Cambodia) – Cambodia’s Volkswagen distributor – said the Kingdom needed to boost its sales of new cars so that factories could eventually produce for the local market as well.

“To boost new car sales, the government should consider reducing the tax on importing new cars so that more Cambodians can afford new cars instead of secondhand ones,” he said.

“Basically, I think if we can sell from 4,000 to 5,000 cars per [automobile] branch a year, it would be enough for investors to consider producing to supply to local market. I would want to have a wide range of spare parts which I can find locally without having to pay tax to import,” he added.

MOST VIEWED

  • Draft law on state of emergency pending finalisation

    Prime Minister Hun Sen will lead a top-level meeting on Tuesdays to review the draft law on imposing a state of emergency. Meantime, he has decided to close all casinos in Cambodia effective April 1. In the press conference after the National Assembly met today, Hun

  • State of emergency on table amid pandemic

    Prime Minister Hun Sen, his deputy prime ministers and legal team will meet on Tuesday to review the draft law on declaring a state of emergency, as Covid-19 cases rose to 107 in the Kingdom on Monday. Speaking at a press conference after a parliament meeting

  • No word on state of emergency

    The National Assembly (NA) said it will postpone all unnecessary meetings in line with guidance from the Ministry of Health and the World Health Organisation (WHO) amid the Covid-19 pandemic. However, it did not say when or how it will debate the “state of emergency”

  • Many in limbo as tension heightens

    As the Kingdom restricts travel and prepares for a state of emergency, some foreigners in Cambodia are scrambling for a way home. Foreign embassies in Phnom Penh are making efforts to get their citizens out, but cancelled flights have become common due to the coronavirus

  • State of emergency draft law set for NA

    A draft law aiming to place the Kingdom in a state of emergency amid the Covid-19 pandemic is set for a debate at the National Assembly (NA) after going through the Council of Ministers’ Standing Committee meeting led by Prime Minister Hun Sen on Tuesday.

  • Hun Sen, ministers, officials donate salaries in virus fight

    Prime Minister Hun Sen and other senior government officials have decided to donate their salaries to the National Committee for Combating Covid-19 in support of the ongoing battle against the coronavirus. Hun Sen announced in an April 1 letter that because the Covid-19 situation in Cambodia