Two Japanese firms announce investment in Thailand
Mitsubishi Electric Corporation and Hitachi Plant Technologies Ltd this week announced their decisions to pour investment into Thailand, despite reportedly eroding confidence among foreign investors in the aftermath of floods.
Mitsubishi announced on Monday it would strengthen its global supply of parts and engineering services through the establishment of a parts-supply and engineering company in Thailand.
The company is launching a new state-of-the-art elevator which promises lower carbon emission through higher energy efficiency and plans to have the model manufactured in Thailand by Thai subsidiary, Mistubishi Elevator Asia.
Meanwhile, a parts-supply and engineering subsidiary, Meltec Parts & Engineering has been established in Chon Buri. Working in cooperation with Mitsubishi Elevator Asia, the new company will supply elevator parts worldwide, taking over the role from Mitsubishi Electric’s Inazawa Works in Japan. Meltec Parts & Engineering will also provide modernisation and renovation services to building owners, using its strong engineering capabilities.
Hitachi Plant Technologies said it will also establish a subsidiary in Thailand this month. Together with investment in Indonesia and Vietnam, it plans to develop autonomous diversified operations and build close ties with customers and communities in Southeast Asia. With a new subsidiary in India to be set up in February, Hitachi’s Asian network outside Japan will cover seven countries including Singapore, the Philippines and Malaysia.
"These local subsidiaries are being launched to speed up decision making and create a system to clarify responsibilities. The aim is also to develop business activity firmly rooted in the region," the company said in a statement released on last Monday.
It said the decision to establish the subsidiaries in Southeast Asia and India was in response to regional market trends and the desire to fulfil customers’ needs.
Thailand’s severe floods inundated nearly 1,000 factories in seven industrial estates causing huge damage. A large number of manufacturers were flooded while others suffered from supply-chain disruptions. The catastrophe is posting huge risks to the insurance industry.
Everest Re Group, the Bermuda- based insurer and reinsurer, said this week that flooding in Thailand would cost it US$100 million to $125 million after the reinstatement of premiums and taxes. The estimate is based on industry-wide losses of $10 billion to $15 billion. The company also said it expected to increase its loss estimate for the March earthquake in Japan by $26 million.
