Mitsubishi to produce thermostats in Laos
Mitsubishi to produce thermostats in Laos
Major Japanese electronics and spare parts producer, Mitsubishi Materials Corporation (MMC) Ceramics Plant, plans to invest in the construction of a factory in Laos to produce and supply electric components for the Asian and European markets.
The parts will mainly consist of temperature control equipment and thermostats which are used in air conditioners, refrigerators, rice cookers and cars.
MMC Electronics Laos Co. Ltd. signed an agreement with a major Lao industrial zone, Vientiane Industrial and Trade Area (VITA Park), on Monday in Vientiane.
Minister of the Government Office, Ms Bounpheng Mounphosay and officials and representatives from the Ministry of Industry and Commerce, Japanese Embassy to Laos, and Lao National Committee for Special Economic Zones and MMC attended the signing ceremony.
“The factory will represent an investment of more than 64 billion kip (US$8 million) to produce spare parts or components of electronic products,” VITA Park President Mr Sibounheuang Viengheuangphay said at the signing ceremony.
MMC representative Mr Naoyuki Ochi said the company would invest in Laos because it had seen the increasing demand for such parts in the Asean market. Currently the products are produced in Vietnam but production is smaller than demand.
“That is why we are here in Laos, to enlarge the capacity of production and supply to consumer groups in the Asean region,” Mr Ochi said.
“Laos has a guaranteed electricity supply and it is also has a land link so we are able to send our supply to Thailand, Vietnam and China,” he said.
Mr Ochi said the construction of the plant will begin now that the agreement has been signed and the project is expected to finish in March next year.
VITA Park is located on 110 hectares of land in Xaythany district of Vientiane and currently more than 50 percent of the space has been reserved by 28 companies for the construction of their factories in the industrial area.
Mr Sibounheuang said these companies include investors from Denmark, Japan, Thailand, Taiwan and China and they have a total registered capital of more than 332.92 billion kip (US$41.6 million).
There are now two companies who export produce to Germany, Italy, Vietnam and Japan at a cost of 40.8 billion kip (US$5.1 million).
VITA Park is located 22 kilometres from the centre of Vientiane along Road 13 South and was established in 2009.
It is operated by the Ministry of Industry and Commerce in collaboration with a private company from Taiwan.
The cost of investment is approximately 344 billion kip (US$43 million) with Laos having a 30 percent share and the Taiwanese company holding a 70 percent share in the operation.
There is a 75 year concession on the land and the company is able to negotiate with the government if they want to extend the agreement.
vientiane times
