KCE expanding output capacity for circuit boards
KCE is investing Bt4.6 billion to expand its production capacity of printed circuit boards (PCBs) by about 185,000 square metres per month by building another facility in the Lat Krabang Industrial Estate to serve increasing orders from existing and new c
“The new factory will enable us to achieve more than a twofold increase in our production capacity, which is currently 1.8 million square feet per month. This will benefit the growth of the industry as well as meet the growing demand of our customers,” Bancha Ongkosit, managing director of KCE Electronics, a top producer and exporter of PCBs in Southeast Asia, said yesterday.
“This factory will invest in highly advanced technology and be automated, helping us to increase efficiency and achieve greater productivity while reducing the labour force, resulting in efficient cost management,” he said.
The board of directors at their meeting approved the project.
Construction will be in three phases. Phase I has a budget of Bt2.8 billion and will take one year. Production of 700,000 square feet per month is expected to begin by the end of next year.
Phase II has a budget of Bt484 million. It is expected to expand production capacity by 600,000 square feet per month by the end of 2015.
Phase III has a budget of Bt1.3 billion. Production capacity is expected to increase by 700,000 square feet per month by the end of 2016.
The project will be financed 12 per cent by the company’s working capital and 88 per cent by loans.
The company’s share price dipped 0.67 per cent to close at Bt14.80 yesterday.
Toshiba Thailand also yesterday informed the Industry Ministry that it would spend more than Bt1 billion to relocate its semiconductor fabrication plant to the new Industrial Zone 304 in Prachin Buri to reduce risk from flooding.
Permanent secretary Vitoon Simachokdee said Japan-based Toshiba had expressed interest in continuing to expand in Thailand out of confidence in the government’s infrastructure-development and water-management projects, which will reduce the threat from flooding.
Kobkarn Wattanavrangkul, chairwoman of Toshiba Thailand, said the move was aimed at restoring the confidence of the company’s customers, as the industrial estate was situated on high land. The new plant in Prachin Buri will start operating this year.
