TAIPEI (Taiwan News) – Taiwan electronics conglomerate, New Kinpo Group (NKG, 新金寶集團) will make the Philippines its southeast Asia manufacturing hub through funds raised by an initial public offering (IPO) of its Philippines arm, Cal-Comp Technology (Philippines) Inc.
NKG plans to build two new manufacturing facilities, buy new equipment and invest in research and development in the Philippines, through an IPO estimated to be worth PHP$6.77 billion (NTD$3.86 billion).
NKG is transforming the Philippines into its regional hub because the company is optimist about the Philippines' economic future.
"We are ramping up investments in the Philippines because we believe in the country's economic potential." NKG Chief Executive Officer Simon Shen (沈軾榮) said in a statement, according to BusinessWorld.
The move takes place as NKG winds down its manufacturing in China, and follows a trend of the Taiwanese company moving its manufacturing bases from China to the Philippines.
NKG opened its first Philippines electronics factory in April 2015, employing over 8,000 people as the company began to roll-back its manufacturing in China.
At the time, Shen said "we were early to see manufacturing potential in the Philippines, with sufficient labor talent, a stable political environment and proper infrastructure, and will bring additional business here in the future as the conditions are ideal for EMS [electronics manufacturing service] companies like New Kinpo Group" in a press statement.
The IPO has been filed with the Philippines' Securities and Exchange Commission, with 378.07 million shares available to the public by the end of the year.