Japan-backed transformation hub opens

Japan-backed transformation hub opens

Industry Minister Uttama Savanayana (second right) and Japanese ambassador Shiro Sadoshima (third right) at the ITC opening.
Industry Minister Uttama Savanayana (second right) and Japanese ambassador Shiro Sadoshima (third right) at the ITC opening.

The Thai and Japanese governments are keen to upgrade the local manufacturing sector with the opening of the industry transformation centre (ITC), supported by a 30-million-baht investment by Japan.

Industry Minister Uttama Savanayana and Japan's ambassador to Thailand, Shiro Sadoshima, witnessed Friday's ITC opening at the Industry Ministry in Bangkok.

At the same venue, the Lean Automation System Integrator (LASI) project has been installed to support automation and robotics systems for Thai small and medium-sized enterprises (SMEs) looking to improve their manufacturing efficiency.

Mr Sadoshima said both countries share the goal of strengthening Thailand's industrial sector, which has featured heavily as a production base and supply chain for Japan companies for more than three decades.

"Japanese investors are focusing on improvements in four segments in Thailand: logistics, raw materials, biochemicals and new investment in the flagship Eastern Economic Corridor (EEC) scheme," Mr Sadoshima said. "We expect both countries to match up their businesses from the experiences of the ITC and LASI."

The government has been upbeat on the EEC scheme, a much-touted initiative to attract new investment in three provinces: Chachoengsao, Chon Buri and Rayong.

The Thai and Japanese governments signed a memorandum of understanding last September for future collaboration on many projects.

Katsuhiko Sugito, executive director of Aichi-based Denso Corp, said the company has received an assignment from the Japan External Trade Organization (Jetro) to be a part of the LASI project as part of efforts to upgrade and strengthen Thai suppliers through automation systems.

But the important thing is readiness of human resources to support the system, he said.

Kobchai Sungsitthisawad, director-general of the Industrial Promotion Department, said the ITC will provide supporting services to Thai SMEs, anticipating 400-500 companies joining this year.

The government plans to expand the ITC to cover 76 provinces in 2018, up from 11. The centre is envisioned as a showcase for innovation and manufacturing improvement for SMEs that use automation systems.

The ITC was unofficially established last August before the partnership with Japan. About 3,800 firms have developed 100 innovative pieces, equivalent to a value of 50 million baht.

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