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Japan Chemical Engineering and Machinery expands into Thailand and Vietnam
“On November 11 of last year, Japan Chemical Engineering and Machinery established local companies in Thailand and Vietnam to promote its equipment business, mainly for chemical plants and related facilities. The aim is to expanding its overseas business. The company is positioned to tackle the demand overseas for chemicals and environment related equipment in emerging nations enjoying amazing economic growth in Southeast Asia. Shoichi Takahashi, the president of the company, expressing his outlook, stated, “Along with further improving our technological capabilities for high added value products produced at our plants in Japan, we’ll also strive to expand local production capabilities by working with local companies overseas in the area of technology. This will lead to expansion of our sales routes in overseas markets by offering products which meet local requirements and drive up overall sales.”
There are various reasons that they selected Thailand and Vietnam for their move overseas. One was that these 2 countries are friendly to Japan. That Thailand was very actively investing in work on its infrastructure required because of the Great Flood which occurred in 2011 was also a factor. In Vietnam, the trend now is for the population to increase, and in addition the country is rich in resources such as oil and rare metals. The conclusion was therefore reached that economic growth could be anticipated.
Through offices in both countries, activities will involve transferring technology to local companies regarding environment related equipment such as solvent recovery and deodorizing equipment, along with equipment related to chemicals. It will also involve design, development, installation and maintenance. The company will also engage in sales and export of products produced locally.
In Bangkok, NIKKAKI (Thailand) is capitalized at 16 million yen. Japan Chemical Engineering and Machinery put up 49%, with the remaining 51% being put up a local manufacturer and a Japanese consulting company. In addition, in Vietnam JCEM Vietnam was established with headquarters in Ho Chi Min City, with the entire capital of 60 million yen put up by Japan Chemical Engineering and Machinery.”