By James A. Loyola
Global tech parts giant New Kinpo Group (NKG) of Taiwan has marked the Philippines as its next main hub in Southeast Asia for manufacturing through subsidiary Cal-Comp Technology (Philippines), Inc. (Cal-Comp Technology).
In a statement, the firm said it is looking to reinforce its existing operations in the country through Cal-Comp Technology’s P6.77-billion initial public offering (IPO).
According to New Kinpo Group Chief Executive Simon Shen, the group has decided to increase the Philippines’ capacity for production as NKG shifts the focus of its operations in China.
“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,” he explained.
Cal-Comp Technology is allotting part of the IPO proceeds for the construction and development of phases 2 and 4 of its First Philippine Industrial Park, Inc. (FPIP) manufacturing complex where subsidiary, Kinpo Electronics (Philippines), Inc. (KPPH) is located. This will add approximately 48,000 square meters of space for manufacturing.
It is also putting up additional facilities inside KPPH’s Lima Technology Center site in Lipa, Batangas.
Cal-Comp Technology is also targeting to enter into additional land leases within FPIP that will cover a land area of approximately 300,000 square meters to increase its manufacturing capacity. Approximately P1.26 billion of the proceeds will be allocated for this purpose.
The said 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.