Japan's Minebea Company broke ground yesterday on a US$60 million manufacturing plant in Phnom Penh’s Special Economic Zone, paving the way for as many as 5,000 new jobs to be created by the end of 2012, officials said.
The plant will launch in December, and fully take over operations from the plant Minebea is presently leasing in the SEZ by the end of 2012, officials said.
“We decided to invest here because Cambodia was the best place for our next Minebea plant and we saw Cambodian people were very good at working in our industry,” said Minebea Corporate Communications Manager Kumano Yasunari, in a statement.
Kumano Yasunari previously said the company was impressed by the work ethic of Cambodians working at Minebea plants in Thailand, and that influenced their decision to set up operations in the Kingdom.
He said Minebea had researched the location for three years, looking at a number of countries in Asia, including Vietnam, Laos and Myanmar, before making a decision.
Minebea’s Cambodian operations will focus on assembling medium- and small-sized motors, mainly for office-automation equipment, household electrical appliances and digital equipment, according to the statement.
Hiroshi Uematsu, Managing Director of the Phnom Penh SEZ Company, said Cambodia’s relatively cheaper production costs and business-friendly investment policies could make the country a destination for international businesses, especially those from Japan.
“Cambodia will become the next production base for Japanese manufacturers if we keep trying to improve the business environment here,” he said.
Sok Chenda Sophea, Secretary General of the Council for the Development of Cambodia, said he welcomes international investors to the Kingdom, especially Japanese investors.
“This is the right time for them to invest here, and it will help to further develop Cambodia’s growing economy,” he said at the ground-breaking ceremony.