Toyota Tsusho Corporation ("Toyota Tsusho") announced today that its wholly-owned subsidiary Techno Park Poi Pet Pvt Co., Ltd. ("TPO ") signed today a business partnership agreement with Sanco Cambo Investment Group Co., Ltd. ("Sanco Investment") to build a second rental factory. In accordance with this agreement, construction will commence on the rental factory.

Cambodia Poi Pet, which is located on the border with Thailand, is around 230km (or approximately 4 hours by car) from the heart of Bangkok, Thailand. This area is also gaining attention as a production site in the "Thailand-Plus-One^*1," business model. Furthermore, Cambodia maintains a high, annual economic growth rate of 7%. Going forward, the labor force is likely to grow. Manufacturing companies, chiefly Japanese companies, are expected to enter into the area.

In September 2016, TPO began operating its first rental factory in the Sanco Poipet SEZ (special economic zone), which is managed by Sanco Investment. Currently there are five companies occupying the factory. Sanco Investment will undertake construction of the second rental factory while TPO will be in charge of attracting Japanese companies looking to enter Poipet, Cambodia, and providing factory operation and management services.

The Toyota Tsusho Group, through its wholly-owned subsidiary Techno Park, plans to support business expansion by Japanese companies into Cambodia. In addition, the Group plans to further expand TPO's original services, including worker dispatching/training, logistics/customs clearing services, and contract manufacturing service, thereby contributing to the development of Cambodia.

*1 Thailand-plus-one: A system for shifting labor-intensive processes of mother factories in Thailand to satellite factories in the surrounding regions, including Cambodia, Laos and Myanmar