2010

Dec.17, 2010

Regarding the Establishment of New Plant in Cambodia

~ Newly establishes a motor production plant to reinforce the production network in Asia ~

Minebea Co., Ltd. ("Minebea") announces that it has officially decided to newly establish a volume production plant in Cambodia, which is the first plant as a Japanese-funded component manufacturer, to meet demand for small-sized motors, etc. that is expected to grow in the future. It is for the first time in seventeen years after setting up its Shanghai plant in China in 1994 that the Company will establish a large-scale production site in a new region. Minebea will invest approx. 5 billion yen for the establishment of the new plant, which is expected to commence operations in April 2011.

The new Cambodian plant will assemble medium- and small-sized motors, mainly for office automation equipment, household electrical appliances and digital equipment, using parts/components supplied by Minebea plants in Thailand, a neighboring country. In this project, first in April 2011, Minebea will commence small-scale production at a rental factory within the Phnom Penh Special Economic Zone—a suburb of the Special City of Phnom Penh. Then, the Company plans to gradually transfer production into its own factory (total floor space : from 2,000㎡ to 10,000㎡) to be newly constructed in the same Zone by the end of 2012. Going forward, the Company will employ up to 5,000 persons, and as its motor production base, will develop the Cambodian site into a volume production structure second only to its Chinese factory.

Minebea has been expanding its operations in Asia for more than forty years since commencing production activities in Singapore in 1972. At present, Minebea's production ratio in Asia, excluding Japan, exceeds 80 percent of the Company's total production. Going forward, by reinforcing its production network in Asia, including the new plant in Cambodia and its Thai production facilities, Minebea intends to make its supply capability more stable and to meet expansion of future demand for motors.

Outline of Cambodian Plant

In its "Five Basic Management Principles", Minebea states clearly its intention to become an enterprise accepted by the local community in which it operates. The Company hopes that it will be able to conduct continuous business and to create stable employment in Cambodia, which is only in the early stages of development, thereby becoming an enterprise that can contribute to the local community.

(Note) Special Economic Zone

Established based on the cabinet order with the objectives of promoting productivity improvement, strengthening of competitiveness, economic growth, export promotion, job creation, etc. in Cambodia. Already twenty-one locations have been authorized as Special Economic Zones in Cambodia (Eight are operating). No value added tax is imposed on imported goods in these Special Economic Zones. Officers in charge of labor, customs, commerce, investment encouragement, etc. are always in the Zones.

Reference

Phnom Penh Special Economic Zone

Production Plants in Asia

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