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Rockwell Considers Indonesia, Malaysia for Assembly Factory Sites.
Byline: Srisamorn Phoosuphanusorn
Aug. 3--Anticipating new opportunities under the Asian Free Trade Agreement (Afta), US-based Rockwell is considering establishing a local assembly factory to gain advantages in the regional market.
It has shortlisted Indonesia and Malaysia as potential locations. Rockwell makes automation products for the petrochemical industry and consumer products and infrastructure for assembly plants.
"We are in the evaluation process to select which country is the best location for the plant," said Y.S. Loh, the regional director for Southeast Asia.
Key factors for making the decision include the size of market demand, market conditions, sources of oil and gas, technical capability and competitors' business response.
However, Mr Loh declined to elaborate on the size of the investment, saying only that the company expected to make its choice in the next year with the establishment of the plant likely around 2003.
The Rockwell Group currently has manufacturing bases in Japan, Australia, Korea, India and China. All of the automation products selling in Thailand have been imported with duties of 10-15 percent .
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