SVI launches factory in Phnom Penh SEZ

Thai company SVI inaugurates its first factory in Phnom Penh Special Economic Zone

Phnom Penh, 3rd March 2017 The electronics manufacturer celebrates the inauguration of its first factory in Cambodia’s leading industrial estate. Construction work is to be completed by the end of the year.

The event was presided over by Mr. Pongsak Lothongkam, CEO of SVI Cambodia. Guests from the private banking sector, employees from SVI and key partners, including Phnom Penh SEZ top management, attended the event.

 “SVI (AEC) is a subsidiary of SVI Public Company, listed in Thailand. Its business is called EMS, Electronics Manufacturing Service, with a global footprint in Thailand, Austria, Hungary and Slovakia. Our Cambodian operations, SVI (AEC) is the next footprint.” said Mr. Pongsak Lothongkam.

SVI AEC (ASEAN Economic Community) is to construct a brand new electronics component plant in the industrial park to produce digital security cameras designed for exporting to Europe. The company signed a 50-year lease in the special economic zone in July 2015 and aims to complete its first factory by the end of this year. Once finalized, the factory will first employ a workforce of 300.

“SVI will bring European high technology to invest in Phnom Penh Special Economic Zone, with a 57,000 Square meters facility. SVI will construct the first phase this year, with 15,000 Square meters. We plan to hire 5000-6000 employees for this facility.” said Lothongkam.

The new factory brings SVI’s investment in Phnom Penh SEZ to 3M$ today. The company is planning to expand is activities by launching an electronic products assembly, cable assembly and mechanical fabrication.

“We understand that SVI chose Cambodia because of its GSP (Generalized System of Preferences) merit and young labor forces.  SVI plant in Bangkok already employs 750 Cambodian operators and they are performing quite well.  SVI operation in Cambodia will become a good model to show that Cambodians are capable to produce high-tech electronics components.” says Hiroshi Uematsu, CEO of Phnom Penh SEZ.

Following Minebea’s third factory inauguration a few months ago, the industrial estate is confident that Thai investments in the zone as well as in its new subsidiary SEZ in Poipet have a real potential to spur growth in the near future: “We are targeting more Thai investors in accordance with their economic model of expansion in the region; increased trade flow between our two countries will attract more direct investment from Thailand. In addition, our upcoming Poipet PP SEZ is a great strategic location for Export-based Thai companies to relocate their production houses. Especially with its proximity to the Laem Chabang deep-sea port,” said Uematsu.

This latest signing highlights once more the attractiveness of the industrial estate to international investors, and its ability to bring a wide range of new industry sectors to the country. Phnom Penh SEZ contributes greatly to the diversification of the Cambodian economy. “Such industries have their own context and technical knowledge requirements. This will lead to a more diverse skill-set of our workforce and it is clearly fundamental to economic diversification,” said Uematsu.

Phnom Penh SEZ welcomes government officials

Delegates from 5 Provinces visited Phnom Penh SEZ for a factory tour

Phnom Penh, 2nd March 2017 - Cambodia’s leading economic zone welcomed a government official delegation from 5 major provinces in the Kingdom to present infrastructure, manufacturing operations and recruitment conditions on the site during a day visit.

Following the success of the previous events regularly organized at the zone, the industrial estate hosted this week the 10th edition of its traditional guided tour. A journey co-organized jointly by the Cambodia Taiwan Education and Employment Program (CTEP) and the National Employment Agency (NEA) with the support of Phnom Penh SEZ.

On this occasion, 62 Deputy, Provincial Governors and District Governors, from Siem Reap (13), Battambang (15), Kampong Thom (9), Kampong Cham (11) and Prey Veng (14) provinces gathered at the Special Economic Zone.

The purpose of the event is to familiarize government officials with the factory job and its working conditions and, thereby, help to promote domestic employment for villagers from the countryside and returned emigrant workers from Thailand.

Also, this kind of initiative is made to help foreign companies in Cambodia to recruit workers from more diverse sources, and implement Corporate Social Responsibility by hiring people from poor rural areas.

After a presentation on the investment and recruitment conditions and procedures by Phnom Penh SEZ top management, honorable guests were invited to visit five factories: Japanese automotive components manufacturer Denso, Japanese manufacturer Minebea, American luxury goods retailer Laurelton Diamonds, Japanese hairpiece and wiglets manufacturer Artnature and first Cambodian dairy company Angkor Dairy Products.

Delegates were amazed by the facilities and infrastructures, as well as the working conditions offered by the industrial estate to their workers. After this visit, government officials have promise that they will plan to work closely with local authorities from their respective province to promote job opportunities, advantageous working conditions and benefits to work at Phnom Penh Special Economic Zone.

MOU Signing Ceremony between Poi Pet PPSEZ Co., Ltd. with B.Grimm Power Public Company Limited for POIPET PP SEZ'S Power Transmission & Distribution Development

The Kingdom’s new coming special economic zone operator under Phnom Penh SEZ PLC., recently enter into Memorandum of Understanding with a leading energy company in Thailand.

Phnom Penh, 20th February 2017 – On Monday 20th, Poi Pet PPSEZ Co., Ltd., a Poipet PP SEZ operator and developer wholly owned by Phnom Penh SEZ PLC. (CSX: PPSP), signed a Memorandum of Understanding (MoU) with B.Grimm Power Public Company Limited, a leading energy company in Thailand formalizing the parties’ cooperation in the development of power transmission & distribution exclusively inside new coming Poipet PP SEZ.

Under the MoU, both parties agree to conduct a feasibility study on the development, construction, ownership, operation and maintenance of power distribution system and/or power generation projects locate inside new coming Poipet PP SEZ which, once operated, shall supply power under terms and conditions of the Power Purchase Agreement (PPA) only for the customers inside Poipet PP SEZ.

The signing ceremony was attended by Chairman of Phnom Penh SEZ PLC. Lok Chumteav Oknha Lim Chhiv Ho, President of B. Grimm Power Public Company Limited Ms. Preeyanart Soontornwata, and senior managements for both parties.

B.Grimm Power Public Company Limited is a member of B. Grimm Group, which has been operating in Thailand for over 139 years, and its core business is power generation and distribution to support the power industry which is vital to industrial sector in Thailand. The competitive strengths and distinction which have been the foundation for B. Grimm Power’s sustainable and efficient growth and expansion are our high caliber management and operation teams with their diversified skills and experience which have been with the company for more than 20 years. Other contributing factors are the fact that we have our own operation and maintenance teams; the use of modern technology and high performance machines in line with international standards; the ability to ensure maximum generating and distribution capacity based on efficient power grid development and effective steam distribution system; and our focus on selling electricity to industrial customers located in close proximity to the power plants.

Amata Nakorn Industrial Estate started its development with only 49 h.a. land in 1989.  B. Grimm started its 1st power plant operation in 1995 in Amata Nakorn Industrial Estate and play an important role to help Amata Corporation PCL to become a household name for industrial estate developer. Currently, Amata Industrial Estate up to 4,120 h.a. hosting more than 500 manufacturers who produce high value-added products such as Bridgestone Tire, Colgate-Palmotive, Daikin, Denso, Hitachi Elevator, Mitsubishi Electric, Nippon Paint, Toyota, etc.

Today, B. Grimm Power operates 28 power plants, comprising 12 cogeneration combined cycle plants, 15 solar power plants and one diesel plant, producing a total of 1,626 megawatts of electricity and 350 tonnes per hour of steam. All power stations developed by the company are located in major industrial estates, including Amata Nakorn, Amata City, Bangkadi Industrial Park, Hemaraj Chonburi, Laem Chabang, where customers enjoy the advantage of lower production costs and higher reliability. The company has a strong relationship with industrial estate developers and currently serves more than 300 industrial customers.

011By 2021, the company is expected to have a total of 43 projects at a cost of some 59 billion Baht with a combined generating capacity of 2,383.3 megawatts, consisting of 2,137.5 megawatts from cogeneration combined cycle plants, 114.2 megawatts from solar power plants, 102.6 megawatts from hydropower power plants, 16.0 megawatts from wind farms and 13.0 megawatts from diesel power plant, together with 500 tonnes per hour of steam.

It intends to invest into Cambodia by starting from transmission and distribution services exclusively in Poipet PP SEZ, since Poipet has good potential to attract manufacturers who produce high value-added products from Thailand.

Located in close proximity to the Thai border with direct access to the future Asian highway No.1, Poipet PP SEZ meets the demands of higher technology manufacturers currently operating in Thailand as well as those who in the near future want to benefit from a highly strategic location in the midst of the Asean Economic Community (AEC).

Phnom Penh SEZ PLC. welcomes Press & Media Agencies from Thailand

Phnom Penh SEZ Office, 8th February 2017 –  Group of Press & top-tier media agencies from Thailand, as organized by Kasikorn Bank team, visited Phnom Penh Special Economic Zone (PPSEZ). The visitors were welcomed by our senior management team to discuss and exchange view on investment incentive in Cambodia and in Phnom Penh SEZ.

Phnom Penh Special Economic Zone
National Road No.4, Khan Posenchey,
Phnom Penh, Cambodia.

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