Minebea Co. of Japan to Increase Investment in Thailand

Mr Yoshihisa Kainuma, President and Chief Executive Officer of Minebea Company Limited of Japan, paid a call on Prime Minister Abhisit Vejjajiva, at the Reception Room 2, the Parliament Building 1.

Mr Yoshihisa expressed great appreciation in having the opportunity to pay a call on the Prime Minister and for the decision by the Board of Investment (BOI), on September 13, 2010, that allowed the company to increase the number of foreign workers to alleviate the short-term labour shortage. The decision was made with conditions that the number of foreign national working in the company must not be over 15% if the total number of the employees and that the company must be operating in Thailand for over 20 years. Other conditions include having registered capital over 10 billion Baht and being a company that has already been incentivised by the BOI but no longer eligible for income tax exemption.

The decision by the BOI has enabled Minebea Company to expand the investment in Thailand by building a bearings assembler in Bangpain District, Ayudhaya Province and another plant to assemble other parts in Lopburi Province. The expansion will greatly increase the company’s production capacity. The investment in Lopburi is valued at 54 billion Baht with the capacity of producing 40 million units monthly. The project would also create 850 new jobs. Likewise, the plant in Ayudhaya is expected to cost around 65 billion Baht and to create 1,700 jobs, with a production capacity of 15 million units monthly.

In addition, Mr Yoshihisa exchanged views with the Prime Minister in the issues of strong Baht and strong Yen. Both currencies are continuously appreciating.

The Prime Minister expressed appreciation for Minebea’s expansion of investment in Thailand by building plants in Ayudhaya and Lopburi. As for the BOI decision, the Prime Minister said the measure was the result of a long discussion before the resolution. The Prime Minister said he is happy that the measure has been helpful and a factor for the expansion of Minebea Company’s investment in Thailand. On the issue of the strong Baht, the Prime Minister said time is still required for further monitoring.

At the end of the meeting, the Prime Minister said he is hopeful that the problems faced by Minebea Company would soon be resolved and that he believes the market for industrial parts would have more demand and a brighter prospect.

Source: http://media.thaigov.go.th/pageconfig/viewcontent/viewcontent1e.asp?pageid=472&directory=1944&contents=50070

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