Tuesday, 01 February 2011 19:15 Jeremy Mullins
The Phnom Penh Special Economic Zone will begin infrastructure work this month to expand land available for businesses, claiming its 141-hectare original development has now been entirely purchased or reserved.
The US$20 million second phase will be fully ready in two years and covers 162 hecatres of land.
Developers aim to attract a number of domestic industries to set up in the new area, as well as international companies - mainly from Japan, PPSEZ managing director Hiroshi Uematsu said in a statement today.
Business at the SEZ had picked up following a quiet 2009, he said.
“We have used 2010 to restructure and streamline our operations, refresh our brand, and prepare for the launch of development phase II,” he said, adding 2011 looked very promising.
Phnom Penh SEZ in Dangkor District is 78-percent owned by Cambodian businesswoman Lim Chhiv Ho, and 22-percent owned by Japanese developer Zephyr Company.
The existing land presently boasts tenants such as Ajinomoto, which makes seasoning, and Yamaha.
Japanese-based firm Minebea will be a new tenant on the second phase of the PPSEZ, according to Hiroshi Uematsu.
In December, Minebea announced it would set up a 5 billion yen ($61 million) manufacturing plant to make motors in Cambodia.
Minebea aims to begin in a leased small-scale production facility in the zone, but transfer to its own factory by the end of 2012.
It aims to eventually employ up to 5,000 people, making it its second largest production base by volume after its Chinese factory, according to a previous release.
Hiroshi Uematsu said the PPSEZ had succeeded due to strong commitment from management to provide quality infrastructure and service for investors.
CDC figures obtained in December showed the Kingdom had 21 SEZs, of which 14 were undeveloped.