Logo of Phnom Penh Post newspaper Phnom Penh Post - Construction starts on second Denso plant

Construction starts on second Denso plant

Content image - Phnom Penh Post
Denso's management teams attended Denso (Cambodia) Co Ltd’s groundbreaking ceremony last month. Supplied

Construction starts on second Denso plant

Japan’s Denso Corp, a global supplier of advanced automotive technology, as well as systems and components for major carmakers, has begun construction of its second factory in the Phnom Penh Special Economic Zone (PPSEZ).

PPSEZ managing director Hiroshi Uematsu hailed the company’s expansion.

“On the morning of November 14, as the developer of Phnom Penh Special Economic Zone, we were very proud to attend Denso (Cambodia) Co Ltd’s groundbreaking ceremony.

“Denso started their investment in our zone in 2013 with a rental factory. After some years of operation, they decided in 2016 to invest in their own manufacturing plant.

“And today we are glad that they have expanded their facilities, which means business has been growing well.

“We would like to express our sincere congratulations to Denso (Cambodia). We will keep working hard to support the company and other investors in the zone to make everyone feel fully satisfied with our services,” Uematsu said on Facebook last week.

Cambodian Investment Management Co Ltd founder and group CEO Anthony Galliano said Denso’s expansion in Cambodia was encouraging and set a precedent for potential manufacturers seeking alternative destinations in which to expand.

Asia is Denso’s primary manufacturing hub, with over 74 subsidiaries and 50,000 employees, he said.

“Cambodia should benefit from Denso’s diversification and expansion, especially from their significant concentration in Thailand and the positive results since their establishment in the Kingdom in 2013.

“Japanese manufacturing investment is presently targeting Vietnam and India, and relying less on China, as a means of strengthening their position as production hubs and establishing footholds in large consumer markets.

“Cambodia is a diversification play, with a strong economy and relatively inexpensive labour. However, high electricity costs, under-developed infrastructure and a stretched labour pool remain deterrents.

“Japanese investment in the Kingdom will increase, but the Kingdom’s slice of the pie will be marginal,” Galliano said.

He said Japanese investment generally brings with it the most sophisticated manufacturing technology, especially in automation and robotics.

Cambodia will initially attract low-skilled manufacturing, he said; however, over time this would change, with the Kingdom benefiting greatly from technology transfer.

The Council for the Development of Cambodia approved Denso’s first manufacturing plant in the PPSEZ, which cost some $21.45 million, in early December last year.

The PPSEZ is located in Por Sen Chey district’s Kantaok commune in the capital, and can be entered from National Road 4.

MOST VIEWED

  • Chikungunya hits 15 provinces, says gov’t

    Ministry of Health spokeswoman Or Vandine said on Thursday that the chikungunya outbreak in the Kingdom has spread to 15 provinces. Some 1,700 people are now suspected to have the disease. Vandine urged people to prevent its further spread by eliminating shelters for the Aedes aegypti mosquitoes

  • Body of woman killed in Bangkok returns

    The Cambodian embassy in Thailand is working to repatriate the body of a casino dealer who was shot dead in Bangkok on Monday night. Ministry of Foreign Affairs and International Cooperation spokesman Kuy Kuong told The Post on Wednesday that officials are preparing paperwork to

  • Gov’t exempts visa A and B holders from Covid fees

    Airline passengers who are diplomats and officials of international organisations holding Type A and B visas for travel to Cambodia are exempted from paying Covid-19 testing fees, said the Ministry of Health in its latest adjustment of rules on Wednesday. Health Minister Mam Bun Heng

  • All inbound flights set to face added scrutiny

    Ministry of Health spokesperson Or Vandine said on Monday that the ministry is monitoring all inbound flights, after it was announced that only those from Malaysia and Indonesia will be temporarily cancelled from August 1. Vandine said on Monday that the two countries were identified as