Taiwan’s technology giant New Kinpo Group, the parent company of Cal-Comp Technology (Philippines) Inc., plans to make the Philippines its main manufacturing hub in Southeast Asia.
NKG chief executive Simon Shen said in a statement the group decided to increase the production capacity of the Philippine operations as the group shifts the focus of its activities in China.
The capacity expansion will be funded by the P6.77-billion planned initial public offering of Cal-Comp Technology.
“China will move towards higher level R&D, so its manufacturing component will slowly be transitioned to the Philippines. This IPO will allow us to raise the funds needed to support the said transition and help the Philippines enhance its manufacturing and R&D strengths,” Shen said.
Cal-Comp Technology plans to spend P1.88 billion from the IPO proceeds in building and expanding its First Philippine Industrial Park Inc. manufacturing complex in Sto. Tomas, Batangas, where unit Kinpo Electronics (Philippines) Inc. operates. The expansion will add approximately 48,000 square meters of space for manufacturing.
Cal-Comp also plans to build additional facilities inside the Lima Technology Center site in Lipa, Batangas.
Cal-Comp Technology is earmarking P1.26 billion to lease an additional 300,000 square meters of land within FPIP to increase its manufacturing capacity.
The facility expansion will require the acquisition of P844 million worth of new assembly equipment and machinery, as well as the upgrade of existing equipment that will increase production capacity. The acquisitions will include surface mount technology and assembly lines for storage, home appliance and calculator products.
Cal-Comp Technology is also investing approximately P800 million on research and development to introduce new products that are expected to come out in the next four to five years.
“We are ramping up investments in the Philippines because we believe in the country’s economic potential. With an increasingly tech-grounded world, we intend to expand Filipinos’ access to technologically-advanced products, equipment, and training,” Shen said.