Nissei plans to reduce production costs at Thai presses

Japan's injection molding machine manufacturer Nissei Resin Industries Co., Ltd. plans to build a factory in Thailand, which will become the company's second overseas factory outside Japan, in order to expand its sales in Southeast Asia and West Asia, while reducing production costs. The new plant, which costs US$8.8 million, is expected to be put into operation in March next year. The initial annual output of presses will be 180 units. The company said in a statement issued on June 12 that it intends to increase the number of its presses to 360 in three years.

Nissei introduced that the new plant will be located in the Hemelol East Coast Industrial Zone in Rayong Province, Thailand. This is where the multinational automotive companies gather. General Motors, Mazda and Ford have established factories there, as well as More than 100 Japanese, European and U.S. companies invest in auto parts production plants.

Nissei said: "There is a name for 'Detroit in Asia'."

The industrial zone is about 75 miles from Bangkok and there are 230 companies in the park, including electronics manufacturers and metal processing companies.

Nissin said that the new plant in Rayong Province will produce medium-sized multi-purpose horizontal injection molding machines.

Nishiki, headquartered in Nagano, Japan, announced at the end of 2010 that it was looking for suitable sites to build in western Asia to meet the growing demand in India, Pakistan, and neighboring countries. However, Nissei said that Thai factories can also supply this area.

Nissei emphasized that expanding sales in western Asia will remain a major target for the new plant.

However, the company said that the reason for setting up a factory in Thailand is to consider the large-scale Thai market on the one hand, and Thailand to provide tax concessions on industrial parks, on the other hand, Thailand has been actively signing trade agreements with neighboring ASEAN neighboring countries.

The new plant has a production area of ​​about 5,000 square meters, and the entire factory has an area of ​​4 acres. There will be 50 employees.

Nissei completed its first factory outside Japan in Taicang City, Jiangsu Province in 2009.

Japan's press makers have rapidly expanded outside their home markets in recent years, hoping to reduce their production costs in order to cope with fierce international competition and avoid the risk of a continuous appreciation of the yen.

Initially, the tide of investment was concentrated in China, and then began to turn to other Asian countries and regions. For example, Toshiba Machine Co., Ltd. and Sodick Co. built a factory in Thailand last year.