Japan's NEC to build new factory in Thailand
Plant will replace two existing sites, boost auto electronics output
YUKAKO ONO, Nikkei staff writer
BANGKOK -- NEC will build a new factory in central Thailand to consolidate operations from two nearby plants, aiming to double sales of telephone exchanges and automotive electronics made at the facilities to about 40 billion yen ($355 million) by 2020.
The Japanese company is expected to spend several billion yen for the new factory. It will boost production of automotive products, hoping to capture growing demand as more vehicle systems become electronic.
Subsidiary NEC Platforms will be responsible for constructing the three-story facility in Nava Nakorn industrial zone in Pathum Thani Province. The 24,000-sq.-meter plant is scheduled for completion by the end of May, and the company will bring in equipment from the existing factories, which are in the same industrial park. Operations will begin in November.
Thailand is NEC Platforms' sole Southeast Asia production base. While previously producing mainly telephone exchanges, the factories have been shifting to automotive components such as electric control units. Like the company's plants in Japan, the Thai plant will feature "internet of things" technology, which connects various systems online, to increase efficiency.
Of the two existing factories, one will shut down, while the other will be converted into an office building. Altogether, the new facilities will be roughly 40% larger than the total current space, when including the office building. The two current plants, built roughly 30 years ago, were showing their age. Areas of them were repaired after Thailand's major floods of 2011.