Taiwan-based firm New Kinpo Group (NKG) is positioning the Philippines as its next main manufacturing hub in Southeast Asia, while preparing its local unit for an initial public offering (IPO) to expand its capacity.
In a statement issued Thursday, July 12, NKG’s Cal-Comp Technology (Philippines), Inc. said it is scheduled to build two new manufacturing facilities in the country, purchase new equipment, and invest in research and development (R&D) for new products.
Cal-Comp Technology expects to fund this expansion through its P6.77-billion IPO recently filed with the Securities and Exchange Commission. The company targets to sell up to 378.07 million shares to the public before year-end.
The aggressive expansion in the country forms part of NKG’s plan to shift its production capabilities to the Philippines from China.
“China will move towards 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,” NKG Chief Executive Officer Simon Shen was quoted as saying in a statement. — Arra B. Francia