Jinpao spends B2bn to expand EEC plant

Jinpao spends B2bn to expand EEC plant

Jareeporn Jarukornsakul, WHA group chief executive, attends a contract signing ceremony with Mr Chung (3rd from right).
Jareeporn Jarukornsakul, WHA group chief executive, attends a contract signing ceremony with Mr Chung (3rd from right).

Taiwan's Jinpao Precision Industry has spent 2 billion baht to expand its second facility in the Eastern Economic Corridor (EEC), expecting to gain more incentives from the Thai government under its S-curve industry promotions for aerospace and healthcare.

Yesterday the company signed a land purchase agreement with Hemaraj Land and Development, a public company under SET-listed WHA Corporation.

The company's total investment includes a 54-rai plot and factory construction.

The second facility will be located at Hemaraj Eastern Seaboard Industrial Estate 2 in Chon Buri.

President Chung Kuo-Sung said the company will soon apply for Board of Investment incentives as its manufacturing operations are in line with the government's goal of upgrading the country's industrial sector to handle high-tech production.

He said operations at the second plant are scheduled to begin two years from now.

"We want to expand production of customised, high-end, precision machine-based products, offering a low volume with a high mix of diversity," said Mr Chung.

"Jinpao serves six industries: aerospace, telecommunications, electronics, green energy, the food inspection industry and healthcare."

He said the new plant will mainly focus on aerospace and healthcare due to the high growth potential of these industries.

Jinpao's customers in the aerospace industry are Airbus, Boeing and Falcon, accounting for 20% of its annual revenue.

Jinpao is also one of a few suppliers for Airbus cockpit aircraft components in Asia.

In 2018, the company plans to apply for a new National Aerospace and Defense Contractors Accreditation Program to receive anodising and heat treatment certification.

The company further plans to set up a mechanical and electrical integration business.

Mr Chung said the company aims to generate 2 billion baht annually from the new plant in Chon Buri.

Jinpao is operated under JPP Holding Company, established in the Cayman Islands in May 2012 and listing on the Taiwan Stock Exchange in March 2017.

Jinpao was established locally in 1998 with its first facility in Samut Prakan province, which employs 1,000 workers.

Last year, Jinpao generated 1.5 billion baht in revenue, up 9%, led by the telecommunications.

He said Jinpao projects a 5-10% increase in revenue this year.

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