Thailand
Tech giant to make Philippines its Southeast Asia hub
MANILA, Philippines — Global tech parts giant Cal-Comp Technology (Philippines) Inc. is spending the proceeds of its planned P6.77 billion initial public offering to expand its operations, acquire new equipment, and focus on research and development as it grooms the country as its next hub in Southeast Asia.
New Kinpo Group chief executive officer Simon Shen said the group is ramping up investments in the Philippines as it believes in the country’s economic potential.
“With an increasingly tech-grounded world, we intend to expand Filipinos’ access to technologically-advanced products, equipment, and training,” Shen said.
Cal-Comp Technology’s parent company has decided to increase the Philippines’ capacity for production as NKG shifts the focus of its operations in China.
“China will move toward higher level R&D, so its manufacturing component will slowly be transitioned to the Philippines. This IPO will allow us to raise the funds needed to support the said transition and help the Philippines enhance its manufacturing and R&D strengths,” Shen said.
Cal-Comp Technology is selling up to 378.07 million primary common shares within the year to raise P6.77 billion to bankroll facilities expansion, acquisition of new equipment, and increased investment in R&D.
It has earmarked P1.88 billion to construct and develop phases 2 and 4 of its First Philippine Industrial Park Inc. (FPIP) manufacturing complex of Kinpo Electronics (Philippines ) Inc. (KPPH) in Sto. Tomas, Batangas as well as additional facilities inside KPPH’s Lima Technology Center site in Lipa, Batangas.
Another P1.26 billion would be used to enter into additional land leases within FPIP that will cover a land area of approximately 300,000 square meters to increase its manufacturing capacity.
The said facility expansion would require the acquisition of P844-million worth of new assembly equipment and machinery, as well as the upgrade of existing equipment that will increase production capacity.
Cal-Comp Technology also intends to further harness Filipinos’ talents by investing approximately P800 million on R&D for the introduction of new products expected to come out in the next four to five years.
Furthermore, the company is spending P243.7 million for other capital expenditure requirements including the purchase of miscellaneous equipment and computer software required for production operations.
It is also allocating P900 million to repay KPPH’s short-term loans with Metropolitan Bank & Trust Co. and Cathay United Bank used for additional working capital.
Cal-Comp Technology is engaged in global electronic manufacturing services and original design manufacturing. It produces multiple product lines including external hard disk drives, TVs, all-in-one PCs, laser printers, smart home appliances, power supplies, 3D printers, innovative smart beauty mirrors, AI humanoid robots, and integrated circuits for cloud computing, among other products.
It is also set to launch its own-branded products to the Philippine market within the year.
Source: https://www.philstar.com/business/2018/07/13/1832938/tech-giant-make-philippines-its-southeast-asia-hub#Xr9Glbigf7MZqQWT.99