Key facts
- Nidec will cease operations in Cambodia on October 22.
- The decision is due to the ongoing border dispute between Cambodia and Thailand.
- The conflict has disrupted supply chains and led to a drop in orders for factories.
- Nidec plans to shift production to its base in Thailand.
- The closures in Poipet City are affecting thousands of workers.
Japanese motor maker Nidec will withdraw from production in Cambodia on October 22, citing the impact of the ongoing border dispute with Thailand. The conflict has disrupted the movement of goods and people, leading to increased transportation costs and a decline in orders for factories in Poipet City.
Nidec Die-casting Cambodia Co., Ltd. manufactures components for precision motors. Its closure, along with other manufacturers in Poipet, puts approximately 4,000 workers under financial pressure. The Ministry of Labour and Vocational Training has stated that it is working to ensure affected workers receive their entitled benefits and compensation, and has provided job-matching services and vocational training.
According to Sun Mesa, spokesperson for the Ministry of Labour and Vocational Training, the factory closures are linked to transportation issues and a drop in orders. Moeun Tola, executive director of the Center for Alliance of Labor and Human Rights (CENTRAL), expressed concern over the job losses and urged for support in debt collection delays for affected workers. In late January, Japanese Ambassador Ueno Atsushi noted that border closures had affected the supply chains of Japanese companies.