KCE Temporarily Close Subsidiary, Cutting Production in Response to Covid-19 Outbreak

KCE Electronics Public Company Limited (KCE) announced the temporary closure of the subsidiary, KCE International Co., Ltd., (KCEI), due to the impact of the COVID-19 outbreak on the current market and a decline in demand from automotive customers worldwide.

 

Following the lock down measures implemented by many countries in which KCE operates, KCE is forced to gradually adjust production of all business units during the coming days. In this regard, KCE has decided to temporarily close and transfer the operations of KCEI in the Bangpoo Industrial Estate, to a new plant in the LatKrabang Industrial Estate. This will enable the KCE LatKrabang plant to operate at a higher efficiency level and to benefit from a reduction in fixed costs. This initiative will minimize the impact on KCE’s profitability due to COVID-19. 

 

The temporary closure of KCEI will begin on May 7, 2020, and end when the COVID-19 outbreak is under control and the automotive market recovers and returns to normality. All KCEI’s employees will be relocated to the LatKrabang plant to ensure that customers continue to receive products and services as usual.

 

During this transition, KCE remains confident about the long-term potential of the business thanks to the strong financial position and principles.