JAPAN-based electronics manufact-urer Minebea has launched operat-ions in the Kingdom, inaugurating its first Cambodian plant on Saturday.
The Tokyo-based company, which has factories in Thailand, Malaysia and China, has invested US$60 million in the factory, located in the Phnom Penh Special Economic Zone.
Prime Minister Hun Sen, who presided over the launching ceremony, said the presence of Minebea signified progress for foreign investment in Cambodia, because it helped to diversify the Kingdom’s economy.
“We rely on the exports of the garment, textile and tourism industries, which are affected by external shock,” he said. “Our big goal is to diversify channels of our economic growth.”
Mineaba, a parts manufacturer, would provide that needed diversification, Hun Sen said.
The plant would assemble motors for office equipment and household appliances, Minebea president and chief executive Kinoma Yoshihisa said.
It will use parts supplied by plants in Thailand, and finished products will be re-exported to Thailand.
“Our decision to invest in Cambodia is in the line with the country’s robust economic growth,” Yoshihisa said.
“It will create thousands of jobs and contribute to the development of the Cambodian economy.”
The plant would initially employ about 1,200 workers and eventually expand to 3,500 jobs, Yoshihisa said.
Hun Sen denied reports Minebea was launching operations in Cambodia in response to the Thai floods affecting Bangkok-based manufacturing zones.
“As the Prime Minister of Cambodia, I would like to specify that Cambodia does not receive leftovers from Thailand,” he said, adding that Minebea had decided to invest in Cambodia prior to the floods. “The CEO of the company has been meeting with me for the past 12 months.”