Toyota Tsusho to Establish First Japanese Techno-Park in Poipet, Cambodia
Supporting Japanese manufacturing at key point along Southern Economic Corridor
Toyota Tsusho Corporation (Toyota Tsusho) announced today that it will establish Techno Park Poipet Pvt. Co., Ltd. (tentative name) in Cambodia in April 2015 to support Japanese-affiliated automotive parts manufacturers in the country. The company will assist the growing number of Japanese-affiliated auto parts manufacturers in Thailand setting up satellite operations in Cambodia. Construction of the techno-park will begin in May 2015 and the start of operations is scheduled for the end of 2015.
In recent years, manufacturers have dispersed their sites throughout Cambodia, Laos, Myanmar and other countries in the region--commonly referred to as "Thai-Plus-One"--in an effort to create and optimize region-wide supply chains. The so-called Southern Economic Corridor provides a logistics infrastructure connecting central Bangkok, Thailand, with Cambodia's Phnom Penh approximately 630 km to the south as well as Vietnam's Ho Chi Minh Port approximately 260 km further south. Japanese-affiliated companies are actively entering Cambodia, which is centrally located within the region and offers a plentiful labor force of young workers.
Toyota Tsusho decided to build a techno-park in Poipet (approximately 230 km, or four hours from central Bangkok) on the border between Thailand and Cambodia. The new company will have a site area of approximately 60,000 m2, with four buildings offering a total floor space of approximately 30,000 m2. The first stage of construction will start with the first building of approximately 20,000 m2, and construction will gradually expand in stages two and three. The techno-park will provide rental factories at units of 1,000 m2, along with employee meals and such administrative services as general affairs, accounting, finance, and human resources. This will enable customers to focus entirely on manufacturing and lower the cost of overseas market entry by alleviating initial investment and risk. Toyota Tsusho plans to provide service for 10 or more companies by 2020.
The techno-park will offer such new services as subcontracted auto parts processing, in which the techno-park will handle some of the pre- and post-processing steps, and temporary employee placement, in which the techno-park will retrain agricultural workers to staff manufacturing positions.
Toyota Tsusho launched its techno-park business in 1998 with support services for automakers in Bangalore, India. Today, techno-parks are a core part of the company's infrastructure field, and it operates a total of four techno-parks in India and one each in Thailand, China, and Indonesia. With new Cambodian techno-park, Toyota Tsusho will have a total of eight sites in five countries. The company will continue to enhance its value chain in emerging countries.
Overview of Techno Park Poipet Pvt. Co., Ltd.
Location Poipet City, Banteay Meanchey Province, Cambodia (Sanco Special Economic Zone; approx. 230km east of Bangkok,Thailand, along the Southern Economic Corridor) Business description (1) Rental of land, factories (including offices)
(2) Subcontracted processing
(3) Provision of employee meals and administrative services, including general affairs, accounting, finance, and human resources
Establishment April 2015 (tentative) Capital US$1.85 million (approx. ¥220 million) Investment ratio Toyota Tsusho Group, 100% Total investment First stage: approx. ¥500 million; Second and third stages are currently under consideration Schedule First stage: Start of operations at end of 2015
Afterwards: Plan second and third stages by end of 2017
Planned site for techno-park