Logo of Phnom Penh Post newspaper Phnom Penh Post - Ticon follows factory shift to Cambodia

Ticon follows factory shift to Cambodia

Ticon follows factory shift to Cambodia

Ticon Industrial Connection Plc, a Thai-based factory and warehouse developer, is expanding its operations into fast-growing Southeast Asian economies, including Cambodia, to help offset sluggish growth at home.

Lalitphant Phiriyaphant, the company’s chief financial officer, said Ticon has already invested $20 million into expansion in Indonesia, and will consider further investment there, as well as establishing a foothold in Vietnam.

The company is also planning to launch operations in Cambodia next year, he said.

“In Cambodia, we were approached initially by a customer to custom-build a warehouse and lease it only to that customer,” he said.

Ticon specialises in developing and managing industrial real estate properties. The company and its subsidiaries currently have 51 factories and warehouses with nearly 800 units, covering a total 2.4 million square metres of space under management.

Lalitphant said factory owners were being drawn to Cambodia by its low operating costs and abundant cheap labour, and more recently by the US government’s decision to extend its Generalised System of Preferences (GSP) scheme to include Cambodian travel goods, allowing these products to enter the US market duty-free.

He said Ticon has seen many of its customers relocate or expand into Cambodia under the Thailand +1 strategy, in which Japanese companies that have set up production in Thailand extend parts of their supply chains to neighbouring countries in order to hedge risk and take advantage of their cheaper operating costs.

“Cambodia is closer to Bangkok and Thailand’s eastern seaboard area when compared with Laos, Myanmar and southern Vietnam, which makes Cambodia very competitive at substituting Thailand’s manufacturing of labour-intensive products,” he said.

WHA Corporation, a rival Thai warehouse developer, has also announced plans to extend its footprint into Cambodia as part of a regional expansion. The company said in August it would invest $1.2 billion to expand its logistics and warehouse operations in Thailand and Southeast Asia over the coming five years.

WHA currently manages 2.2 million square metres of warehouse space in Thailand.

MOST VIEWED

  • Hundreds of children in hospital with dengue

    A serious dengue fever epidemic is affecting Cambodia, with nearly 600 children hospitalised in the five Kantha Bopha Children’s Hospitals on Monday alone, a statement posted on the Kantha Bopha Foundation’s official Facebook page said on Wednesday. Because Kantha Bopha Children’s Hospitals provide

  • Gov’t to probe Chinese exports to US via Sihanoukville

    The government is investigating allegations that Chinese companies are using Chinese-owned special economic zones in Cambodia to export goods to the US and avoid tariffs, said Ministry of Commerce spokesman Seang Thay. The move comes after US embassy spokesman Arend Zwartjes said the US had

  • Sihanoukville building collapse death toll rises to 19

    Minister of Interior Sar Kheng said on Sunday that the government will act against those responsible for the collapse of a seven-storey building in Sihanoukville on Saturday, which resulted in 19 dead and 24 injured as of Sunday evening. Sar Kheng said three Chinese nationals and one

  • Banh: The Khmer Rouge worse than sanctions and pressure

    Minister of National Defence Tea Banh said on Thursday that having sanctions and external pressure placed on Cambodia was not worse than life under the brutal Khmer Rouge regime. Tea Banh, who is also deputy prime minister, was speaking to military and ruling party officials