Nissan is investing in auto parts export facilities in Indonesia and Thailand, with the Thai plant set to become Nissan’s largest parts export base outside of Japan. The Thai plant is expected to generated some US$300 million worth of exports per annum, while the Indonesian facility is expected to generate US$100 million worth of exports, procuring parts from about 90 Thai-based component manufacturers. That is about 16% of the parts exported by Japan. The 40,000 square-meter Thai plant will begin operations in January 2007 while the Indonesian facility will go operational in August 2007.
Nissan Asia Pacific Pte Ltd, it’s Singaporean office will be managing the export operations for the ASEAN region, and will handle complex, cross-border financial transactions. Basically the production centers will be Thailand and Indonesia and the financial, marketing and management center will be in Singapore. The Singaporean facility currently handles Southeast Asian transactions but there are plans to grow it into a global centre to handle financial transactions worldwide. Singapore’s Economic Development Board (EDB) has awarded Nissan Asia Pacific Pte Ltd “International Headquarters” (IHQ) status, allowing the company to enjoy a tax rate of 10% and below.
This is quite a major investment! Thailand, Indonesia and Singapore. Geographically, Malaysia is in the middle of all three countries. But so far our National Automotive Policy has not been able to attract any new major investments from Nissan. Sigh! :(
Stay tuned for reports on the latest talks of a GM-Renault-Nissan alliance!