Japanese auto parts maker to open factory in Laos
Japanese auto parts maker to open factory in Laos
Japanese auto parts maker, Meiwa Engineering Company of Thailand, will open a factory in Vientiane after the government approved their investment proposal last month.
The company will be known in Laos as the Meiwa Lao Sole Company and the factory will be located in Thangone village, Xaythany district, the founder and President of the company, Mr Haruyoshi Kumazawa, told local media yesterday.
This is the first automobile parts maker to set up operations in Laos. The government expects this investment will lead to more Japanese manufacturers locating themselves in Laos because labour costs are low.
The company manufactures brake and clutch system parts, shock absorbers, fuel tubes, air brakes, and machines engine bolts. It supplies parts to Japanese automobile assembly plants in Thailand, including Toyota, Nissan, Honda, Mitsubishi, and Matsuda Auto Parts.
The Meiwa Lao Sole Company factory is expected to open in July next year, employing 100 workers in the first year with employee numbers expected to rise to between 250 and 300 by 2017, Mr Kumazawa said.
“This year, we will employ 10 to 15 people and send them to Meiwa Engineering Company in Thailand for on-the-job training for eight months. After they complete their training they will come back to Vientiane to be team leaders at the new factory.”
If this factory proves to be highly successful, the company plans to expand their business to Cambodia, Vietnam and Myanmar, Mr Kumazawa said.
He was confident the Lao factory would be capable of producing quality auto parts at cheap prices due to the fact that the capital costs will be relatively low.
The company supplies a variety of vehicle assembly factories in Asia and Europe, he explained.
The Meiwa Engineering Company in Thailand was established in May 2000. It is located in Chonburi district and currently employs 200 workers.
vientiane times
