Taiwan New Kinpo to build industrial park in Thailand for supply chain diversification: report
TAIPEI, NNA – Taiwanese electronics manufacturer New Kinpo Group plans to build an industrial park in Thailand to meet demand for diversifying supply chains amid rising concerns over the unresolved U.S.-China trade row and the impact of the global Covid-19 pandemic.
“Under the impact of the trade war and the global novel coronavirus outbreak, our clients are considering dispersing production facilities and easing reliance solely on one country,” New Kinpo Group CEO Simon Shen said at a press conference in Taipei for a launch of its latest disease-combat products such as artificial intelligence robots on April 30, a Central News Agency report said.
With an undisclosed investment figure, the planned industrial estate can accommodate about 40 suppliers in a location about a 10-miniute drive from one of its Thai plants, according to the report.
Construction is expected to begin at the end of this year and will be completed by the end of 2021 or early 2022. Further details, such as scale and possible suppliers to be based there, are not available yet as the company is “in talks with partners in Thailand,” a company media liaison told NNA on Thursday.
New Kinpo aims to assist suppliers, who are retreating from China for various reasons in Shen’s observation, to quickly set up factories and secure orders in Thailand.
“Helping components suppliers relocate to Southeast Asia is a trend for future development,” said Shen. His company plans to hold a forum in June or July in Taiwan to call for industry players to join in, the report said.
Founded in 1973, New Kinpo operates in China, Southeast Asia, the United States, Brazil and Mexico and has witnessed supply chain formations for electronics items such as PC keyboards and display panels in Thailand.