Hiroshima-based Daikure Co. Ltd. will be the first Japanese firm to set up shop in Tainan City’s Taiwan-Japan industrial park, according to the ROC Ministry of Economic Affairs Oct. 30.
The NT$100 million (US$3.4 million) facility, which will produce heat exchangers, is the company’s first investment in Taiwan and third overseas manufacturing operation after Thailand and Vietnam.
An MOEA official said Taiwan’s competitive business environment, an appreciating yen, and the need for Japanese firms to establish backup production sites following the March 2011 earthquake in northeastern Japan are major reasons for the investment.
“Daikure is very optimistic about its business outlook in the region and will consider increasing its stake in Taiwan,” the official added.
Construction on the plant is expected to commence in January 2013, with production scheduled to get under way in October the same year. Once operational, the plant will be Daikure’s regional headquarters for mainland China and Southeast Asia.
The MOEA expects the investment to entice more Japanese small and medium enterprises to follow suit. “We also foresee closer cooperation between Daikure and its local partners in boosting the global competitiveness and R&D capabilities of Taiwan’s traditional manufacturing sectors.”