Hitachi: Commencement of Feasibility Study on Development and Operation of an Industrial Park in Cambodia
November 18 2014 - 10:53PM
JCN Newswire (English)
Hitachi, Ltd. (TSE:6501, "Hitachi") today announced that it will
commence a feasibility study on the implementation of a business to
develop and operate the Phnom Penh South Special Economic Zone
(tentative name), a new industrial park in Kandal Province,
Cambodia. Hitachi today entered into a memorandum of understanding
(MOU) with the three companies with which it will jointly conduct
this feasibility study: Forval Corporation ("Forval"), Japan
Development Institute Ltd. ("JDI"), and Heng Development Co., Ltd.
("Heng Development"), a local Cambodian real estate company(1).
Based on this MOU, the four companies will conduct, by June 2015, a
feasibility study on marketing, basic design, business plan and
other aspects, and conduct a commercial viability assessment based
on the results of the study. If a decision is made to proceed with
the business, Hitachi plans to start construction of the industrial
park in July 2015, and complete it in approximately one year. The
industrial park is planned to be approved by the Cambodian
government as a Special Economic Zone, and will thus be granted
legal and administrative incentives such as tax breaks.
In recent years, Southeast Asia has seen an influx of global
companies into the region in step with economic expansion,
population growth and other trends. Moves to build, upgrade and
expand logistics and production sites by these companies are
gathering momentum. Notably, Cambodia is attracting growing
interest from companies seeking to enter Southeast Asia markets,
based on several factors. The country is adjacent to Thailand and
Vietnam, where large numbers of companies have already made
progress. Cambodia also gives companies access to a
moderate-quality labor force at lower wages than in neighboring
countries.
Accordingly, Hitachi has decided to commence a feasibility study of
an industrial park development and operation business in Cambodia.
The study will look at a site proposed for the development of the
industrial park that is located around 40 minutes by car from
central Phnom Penh, the Cambodian capital. The site is near
national roads and beltways, and offers good access to Bangkok and
Ho Chi Minh City. Hitachi expects the tenants of the industrial
park to be companies from various Asian countries, as well as
Japanese companies. Plans call for the industrial park's
first-phase development block to cover an area of approximately 1
million square meters, with expansion to be considered thereafter
up to approximately 3 million square meters.
Hitachi will serve as the leader of the entire study in a
coordinator role, along with formulating business plans and
conducting marketing activities. Forval, a consultant that helps
Japanese companies seeking to enter global markets, will conduct
marketing activities centered on medium-sized enterprises
interested in moving into Cambodia. JDI, a development consultant
for emerging countries, is tasked with preparing a master plan for
construction, leveraging its development track record in other
special economic zones in Cambodia. Heng Development, a Cambodian
real estate company, will provide local information, apply for
local permits and licenses and perform other related tasks, as a
local partner.
If a decision is made to develop and operate the industrial park
after the feasibility study, Hitachi plans to start construction of
the industrial park in July 2015, and complete it in approximately
one year. Hitachi will provide the industrial park with reliable
equipment and services that enable tenant companies to focus on
their main business. To this end, Hitachi will leverage the Hitachi
Group's components and systems for plants and factories, as well as
its solutions and expertise in EPC(2), maintenance and operation
services.
In April 2014, Hitachi established Hitachi Infrastructure Systems
(Asia), Pte. Ltd. as the Southeast Asian regional supervisory
company for its Infrastructure Systems Business, and is
strengthening business activities closely tied to customers and the
region. Going forward, Hitachi will push ahead with the feasibility
study in cooperation with the three other companies, with a view to
realizing the industrial park development and operation business.
In so doing, Hitachi aims to help global companies establish a
foothold in Cambodia, as it strengthens and expands its business
further in Southeast Asia.
Notes:
(1) JDI has been selected by the Ministry of the Economy, Trade and
Industry (METI) for the International Feasibility Studies on "Smart
Community" and will continue with this project in cooperation with
METI.
(2) EPC: Engineering, Procurement, and Construction
About Hitachi
Hitachi, Ltd. (TSE:6501), headquartered in Tokyo, Japan, delivers
innovations that answer society's challenges with our talented team
and proven experience in global markets. The company's consolidated
revenues for fiscal 2013 (ended March 31, 2014) totaled 9,616
billion yen ($93.4 billion). Hitachi is focusing more than ever on
the Social Innovation Business, which includes infrastructure
systems, information & telecommunication systems, power
systems, construction machinery, high functional materials &
components, automotive systems, healthcare and others. For more
information on Hitachi, please visit the company's website at
http://www.hitachi.com.
Source: Hitachi
Contact:
Hitachi Ltd
Corporate Communications
Tel: +81-3-3258-1111
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