Japanese motor maker Nidec will end production at its Poipet plant in Cambodia and gradually shift operations to other facilities in Southeast Asia, including Thailand.
The company cited uncertainty caused by continued tensions along the Thai-Cambodian border, saying it could no longer ensure the stability of its regional supply chain.
Parts from the Poipet plant were previously transported by truck across the border to Nidec facilities in Thailand. Prolonged disruption of land crossings has made cross-border logistics increasingly uncertain and, in some cases, significantly more expensive.
Nidec has two die-casting facilities in Thailand, in Bowin and Pinthong, which produce components for precision motors.
The move affects 724 employees and local businesses reliant on the Cambodian plant, according to reports.
The decision comes as prolonged border tensions continue to disrupt cross-border trade and manufacturing operations.