NKG will transfer its production to PHL from China

By Arra B. Francia Reporter

TAIWAN New Kinpo Group (NKG) positions the Philippines as its next major hub in Southeast Asia , while preparing its local unit for an initial public offering (IPO) to increase its capacity.

In a statement released Thursday, Cal-Comp Technology (Philippines), Inc. of NKG said that it is planned to build two new factories in the country, buy new equipment, and invest in research and development (R & D) for new products.

Cal-Comp Technology plans to fund this expansion through a $ 6.77 billion IPO recently filed with the Securities and Exchange Commission. The company aims to sell up to 378.07 million shares to the public before the end of the year

. The aggressive expansion is part of NKG's plan to transfer its production capabilities to the Philippines from China.

"China will move towards higher-level R & D so that its manufacturing component will be gradually transferred to the Philippines.This IPO will enable us to raise the necessary funds to support this transition and help the Philippines to strengthen their manufacturing and R & D strengths, "said NKG General Manager Simon Shen in a statement.

A billion dollars from the IPO will be used to build and develop phases 2 and 4 of its first manufacturing complex, Philippine Industrial Park, Inc. (FPIP) in Sto. Tomas, Batangas. This will give the company an additional 48,000 square meters (m2) space for manufacturing.

The site currently houses a facility of Cal-Comp Technology's subsidiary, Kinpo Electronics (Philippines), Inc. (KPPH). 19659004] The company also plans to build additional facilities at the KPPH Technology Center site in Lipa, Batangas.

The NKG unit will allocate another 1.26 billion pesos for its entry into additional land leases with FPIP for an area of ​​300 000 m²

Parallel to the expansion of the facilities, Cal-Comp Technology will acquire new equipment and assembly machines worth 844 million pesos, such as surface mount technology, assembly lines, appliances and calculators. The budget also includes the improvement of existing equipment to increase their production capacity.

Almost 800 million P will be spent on Cal-Comp Technology's investments in R & D to introduce new products in the next four to five years. Some 243 million Filipino pesos have been programmed for equipment expenses, including the purchase of various equipment and software for production operations.

The remaining $ 900 million will be used to repay KPPH's short-term loans from Metropolitan Bank & Trust Co. and Cathay United Bank, initially used as working capital.

"We are increasing investment in the Philippines because we believe in the economic potential of the country, and with a world more and more entrenched in technology, we intend to expand access to Filipinos to technologically advanced products, equipment and training, "said Mr. Shen

.Leading his own branded products to the Philippine market this year.

His multiple product lines include external hard disk drivers, televisions, laser printers, intelligent home appliances, humanoid AI robots and 3D printers, among others.