Japan’s Nidec to close Cambodia plant and shift production to Thailand

Japanese motor manufacturer Nidec is closing its only factory in Cambodia and relocating production to Thailand, citing ongoing border disruptions between the two countries. The Poipet plant of Nidec Die-casting (Cambodia) will cease operations on October 22, leaving 724 employees jobless, as reported by Japanese and Cambodian sources.

The facility manufactures die-cast components for precision motors, including parts for hard disk drives. Traditionally, these components were transported across the border to Nidec's Thai operations. However, Nidec believes that there is no guarantee that cross-border transport will return to normal, making continued production in Poipet unfeasible.

The company is planning to shift production to one of its existing Thai die-casting factories in Narasam (Borwin) or Pinthong, both of which produce precision motor components. Nidec has not disclosed which Thai location will assume the former Poipet responsibilities. The supply chain in Cambodia was designed to leverage Thailand's lower labor costs while remaining connected to Thai factories, warehouses, and ports.

The Poipet site benefited from its proximity to Aranyaprathet in Thailand's Sa Kaeo province, approximately 230km from Bangkok, and the nearby Laem Chabang port, reachable in about 3.5 hours. However, border clashes in 2025 severed this advantage, forcing manufacturers in Poipet to rely on sea transport or flying urgent orders, which significantly increased logistics costs.

Cambodia's Ministry of Labour and Vocational Training acknowledged that goods from Poipet factories previously reached Thai plants within an hour or two, but the closure will likely lead to higher logistics expenses and delayed urgent orders for affected companies. The closure of the Poipet plant is part of a series of factory closures this year in Banteay Meanchey province, including Chinese-owned ML Intimate Apparel (Cambodia) and Thai-owned Hi-Tech Apparel (Cambodia).

These factory closures will collectively impact around 4,000 workers. Nidec is not withdrawing from Southeast Asia, as it still operates in Thailand, Vietnam, the Philippines, Malaysia, and other regions.