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New PHP 1 Billion Plant Opened By Mindanao

March 2019

Gardenia Bakeries Philippines Inc. announced the inauguration of its new 2.5 hectare plant in Mindanao.The PHP 1 billion (USD 19 million) production facility is located in PHIVIDEC Industrial Estate in Misamis Oriental with the capacity of producing 130,000 loaves and buns per day.

The plant has fully automated bread-making machines that will produce white bread, health bread selections, flavored loaf offerings and buns or pandesal products. Almost all equipment of the plant was imported from Germany, the Netherlands, United States, Malaysia and Japan.

With this expansion, Gardenia is forecasting a 35% increase in sales which will not only serve the growing demand in Mindanao but also to support the huge requirement in Visayas. The company is also preparing to start the full operation of its PHP 2 billion (USD 38 million) plant in Pampanga this year.

(Sources: The Philippine Star; BusinessWorld; Manila Bulletin)

Shell Starts Production At First Bitumen Blending Facility in the Philippines

February 2019

The production of the first batch of bitumen was completed at a new bitumen blending facility owned by Pilipinas Shell Petroleum Corporation, the local energy subsidiary of global giant Royal Dutch Shell. Being the only bitumen producer in the Philippines, Shell invested about USD 14 million in bitumen-asphalt production inside their Tabangao refinery in Batangas, which is about 80 to 100 km south of Manila.

The opening of Shell's bitumen facility is good news in the Philippines, as the country is historically import-dependent of this asphalt component. Ultimately, having local bitumen production supports the integrity and reliability of local conractors, because it can boost supply reliability, and bring the possibility of improving the management of price risks associated with volatility in market prices. 

Shell is a global leader in bitumen technology and currently holds 49 active patents linked to bitumen and asphalt. In the Philippines, the company is well-established and has locally available technical assistance to support special project requirements. Shell's bitumen-asphalt production facility in Batangas will both serve the domestic and regional market. 

Meanwhile, earlier in 2018, local company Phoenix Petroleum Philippines Inc. announced plans of putting up a PHP 275 million (USD 5.3 million) bitumen plant in Batangas, which is also in the same province as the aforementioned Shells's bitumen facility. By the middle of 2018, the company had broken ground for the construction of its own asphalt plant which is expected to be completed sometime in 2019. Phoenix entered into a joint venture agreement  with Thailand's TIPCO Asphalt and Carlito B. Castrillo of PhilAsphalt (Devt) Corp. to enter the business of bitumen and bitumen related products in the Philippines.

These developments come on the back of the present Philippine government's ambitious infrastructure program, which is expected to cost a whopping PHP 9 trillion (USD 173 billion) until 2022. Majority of the flagship projects of this program are in the transportation sector - six airports, nine railways, three bus rapid transits, 32 roads and bridges, and four seaports. 

(Sources: Philippine Star, Shell, Phoenix Petroleum)

Cargill Subsidiary and Filipino Realtor Ramp Up Development of Industrial Complexes

January 2019

The Philippine subsidiary of multinational firm Cargill, Cargill Joy Poultry Meats Production (or C-Joy), has partenered with Filipino company CentralHub Industrial Centers to develop industrial facilities across the country.

CentralHub Industrial Centers is the industrial leasing unit of Philippine real estate development company, DoubleDragon Properties Corp. This team up with C-Joy  is in line with the company's goal of becoming the country's leading supplier of industrial complexes, targeting eight projects with a total 100,000 square meters of leasable industrial spaces by 2020. 

“We are very optimistic for the growth prospects of CentralHub as we expect the demand for modern industrial complexes to continue to increase significantly as more companies will require modern standardized multi-use warehouses suited for commissaries, cold storage, light manufacturing and logistic distribution centers,” said DoubleDragon chief investment officer Hannah Yulo.

DoubleDragon is one of the top property developer in the country that has identified industrial leasing as another growth area. The surge of the retail sector, particularly, e-commerce, and demands from the industrial sector such as electronics, automotive, and chemicals and pharmaceuticals, are the top contributors for the expected sustained growth of the logistics and warehouse sector in the Philippines in the medium-term. 

(Sources: Manila Standard; Business World; Philippine Star; Press Reader) 

Chinese Steel Company To Locate Plant In Mindanao

November 2018

Philippines’ Department of Trade and Industry (DTI) Secretary Ramon Lopez confirmed that Chinese steel company Panhua Group Co., Ltd. (Panhua) will set up a 305-hectare integrated steel manufacturing plant at the PHIVIDEC Industrial Estate of the Misamis Oriental-Special Economic Zone (PIEMO-SEZ).

At the sidelines of Chinese President Xi Jinping’s visit to the Philippines, the Secretary led the signing of the memorandum of understanding (MOU) between Panhua Chairman Xinghua Li, PHIVIDEC Industrial Authority CEO and Administrator Atty. Franklin Quijano, and Philippine Economic Zone Authority (PEZA) Deputy Director General Tereso O. Panga on 20 November.

The USD 3.5 billion investment will be directed towards a port, an integrated steel mill with a capacity of 10 million tons, an industrial park, and other downstream industries. The three-phase project is expected to be completed in 6 to 7 years and will generate 50,000 jobs.

After this MOU, Panhua will proceed to obtain a PEZA registration and an Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR), and to sign a memorandum of agreement to begin the construction of the project.

(Sources: Department of Trade and Industry)

Petron Gets Tax Perks For Condensing Processing Facility

October 2018

Philippines’ Board of Investment (BOI) recently approved the grant for tax incentives to Petron Corporation for its PHP 80 billion (USD 1.5 billion) investment for a new condensing processing facility inside its oil refinery in Bataan. Based on Downstream Oil Deregulation Act, Petron has been granted a non-pioneer incentive that includes 5-year income tax holiday and duty-free importation of its capital equipment.

Petron’s investment will require new processing units and allied equipment like new getty and tanks including 6 cooling storage tanks to produce additional capacities for LPG, diesel, naphtha and petrochemical products. The new condensing processing plant will be a stand-alone facility located inside Petron’s oil refinery complex in Limay. 

(Sources: Manila Bulletin)

Israeli Arms Manufacturer To Open Plant In Philippines

September 2018

Israeli firm Silver Shadow Advanced Security Systems Ltd (SSASS) and the Philippines’ Rayo Illuminar Corporation (RIC) signed a memorandum of undetaking to set-up a manufacturing plant in the Philippines.

Under the agreement, the facility will initially manufacture and assemble firearms and ammunitions which is anticipated to employ at least 160 personnel. SSASS is committing to put an initial investment of USD 50 million and will provide training.

SSASS’ CEO Amos Golan is expected to visit the country soon to finalize the partnership and begin the construction and installation of essential apparatus. Limay, Bataan is the prospective location being eyed by the two firms for the manufacturing facility. While the agreement was signed during President Rodrigo Duterte’s visit in Israel, RIC and SSASS already had a series of exploratory meetings.

SSASS specializes in the production of weaponry systems and small arms, such as various assault rifles, submachine guns, sniper rifles and more, for military, police and security applications.

(Sources: Philippine News Agency; The Asian Policy; The Jerusalem Post)

PEZA Approves Two Expansion Projects By Japanese Firms

August 2018

The Philippine Economic Zone Authority (PEZA) has registered the additional investments of Denso Ten Philippines Corporation and Daisho Tech Philippines Corporation.

Denso Ten’s new facility is located on its existing property in Laguna Technopark in Sta. Rosa City, Laguna. The Japanese firm’s logistic facility was designed to provide warehousing support services for importation, storage and sales of automotive parts and component to PEZA registered firms and exporters.

Daisho Tech meanwhile upgraded its manufacturing facility in the People’s Technology Complex-Special Economic Zone Carmona in Cavite. The company’s manufacturing services include visual inspection, laser marking, oven baking, programming, taping, reeling and packaging of tapes, reels, integrated circuits, and electro components through manual, semi-manual, and automatic equipment.

PEZA’s approved projects stands at 258 during the first 6 months of the year amounting to PHP 53.04 billion (~USD 995 million).

(Sources: Philippine News Agency, PTV News)

Taiwanese Electronics Company Expanding Operations In Philippines

July 2018

Taiwan-based company, New Kinpo Group’s (NKG) electronic manufacturing arm Cal-Comp Technology (Philippines) Inc. is expanding its manufacturing and research & development operations in the Philippines. 

Cal-Comp is set to build 2 more production facilities, purchase new equipment and further strengthen its local capabilities on research and development of new products through its PHP 6.77 billion (~USD 127.2 million) initial public offering (IPO) later this year.

The company recently filed an PHP 6.8 billion (USD 128 million) IPO with the Security and Exchange Commission which targets to sell 378.07 million shares to the public before the year ends, with an over-allotment option of up to 19.9 million shares, at a maximum price of up to PHP 17 per share. 

Cal-Comp Tech currently has manufacturing facilities in the Lima Technology Center in Lipa City and the First Philippine Industrial Park in Sto. Tomas, Batangas and it employs more than 6,000 employees. NKG also has other subsidiaries in the Philippines, including Cal-Comp Precision (Philippines) Inc. and AcBel Polytech (Philippines) Inc, which produce injection molded plastic precision parts and power supplies products for the global markets. 

NKG is the largest Taiwanese investor in the Philippines. It is a global electronic manufacturing services (EMS) and original design manufacturing (ODM) company, with product lines spanning storage, printers, network-attached storage (NAS), wireless and broadband, digital home, consumer electronics, wearables, 3D printing, robotics, power management and smart grid, industrial, automotive, security, medical/healthcare and emerging technologies. 

(Sources: BusinessWorld, Philippine Daily Inquirer, ABS-CBN News; Manila Standard)

San Miguel To Build New Breweries And Spam Manufacturing Facility

June 2018

San Miguel Corporation (SMC) has announced plans to  set up 5-6 new breweries, with an investment of around $250 million each in Philippines,with the objective of bringing down logistics costs and boosting profitability for the beer business. The breweries will have a capacity of two million hectoliters each. Logistics accounts for 30% of its current costs in the brewery business.

Several locations have been identified for the breweries - Sta. Rosa, Laguna; Quezon province near the Bicol area; Cagayan de Oro; Zamboanga; and near the boundary of La Union and Pangasinan.

SMC is also going to build a facility to manufacture canned cooked meat brand Spam for export in the Asia-Pacific region. SMC has had the license from Hormel Foods Corporation to manufacture SPAM for the past 20 years but it hasn't utilised it. The plant will have a capacity of 150,000 tons per year.

SMC is also in the process of completing six feed mills with a capacity of one million tons per year by the end of 2018. The feed mills are located in Mariveles, Bataan; Mabini, Batangas; Cagayan de Oro; San Ildefonso, Bulacan; Mandaue, Cebu; and Iloilo City.

The new breweries, feed mills, and the Spam manufacturing facility are part of the company's plan to build 18 new facilities for the food and beverage business within the next 2-3 years. 

(Sources: Business World, Manila Bulletin)

Electronics Sector Seeks 10% CIT

May 2018

The Department of Finance (DOF) is currently working on tax reform package which seeks to lower the corporate income tax (CIT) and rationalize the fiscal incentives in the country which includes the removal of the perpetual 5% tax on gross income earned (GIE) currently enjoyed by companies inside the country’s export processing zones.

With this, the Semiconductor Electronics Industry of the Philippines Institute (SEIPI) has proposed for a 10% CIT that would include the Local Business Tax (LBT) and the Real Property Tax (RPT). The proposal is lower than the current proposal of 15-20 percent in which the 2% in the 5% gross income has to be remitted by the companies to the local government unit (LGU) and assessed based on the local government code.

According to SEIPI, a 15% rate would make it difficult for local manufacturers to compete with Vietnam’s zero-rent for 50 years and Thailand’s 15-year income tax holiday. Already operational expenses (power, labor, logistics) are said to be higher in the Philippines. In addition, they don’t want their industry to be exposed to inconsistencies in the Local Government Units, which are highly political and severely unstandardized. Thus, they want the LBT and RPT be included in the 10% CIT.

(Sources: Manila Bulletin, ABS CBN News)

BOI Approves 3 Manufacturing Projects Worth PHP 6.95 Billion (USD 134 Million)

April 2018

The Board of Investments (BOI) recently approved three expansion projects in the manufacturing sector that are anticipated to sustain the growth momentum of the sector from last year. The three expansions projects which amount to PHP 6.95 billion (USD 134 Million) are:

  • San Miguel Yamamura Asia Corporation’s PHP 3.99 billion (USD 76.9 million) project to build a new glass facility in its existing plant in Cavite sitting on a 32,000 square meter lot. The company will also invest in upgrading its existing plant to the latest machinery and equipment as well as to latest technological innovations.
  • The PHP 2.86 billion (USD 55.1 million) expansion project of Philippine Resin Industries Inc. in its plant in Mariveles, Bataan. The expansion aims to provide an additional 120,000 MT from its current annual capacity of 100,000 MT and is expected to be operational by January 2019.
  • Etalcast Corporation will be expanding its production of aluminum die cast parts for motorcycle and automotive parts. The PHP 100 million (USD 1.9 million) project will involve the installation of additional facilities and equipment in its plant in Carmona Cavite.

The Department of Trade and Industry (DTI) has launched several programs and campaigns since 2012 that aim to revitalize the manufacturing industry and make it a pillar of inclusive economic growth of the country.

(Sources: Business Mirror; Board of Investment; Manila Standard)

SSPC Opens $51-M Facility In Clark For Production Of Latest Multimedia Cards

March 2018

SFA Semicon Philippines Corp. (SSPC), a wholly-owned subsidiary of SFA Semicon Korea recently opened its expansion manufacturing facility in Clark Freeport Zone, Pampanga. The facility will manufacture the latest version of embedded multimedia cards (eMMC), which is an advanced, high-performance NAND flash memory which is designed for mobile applications, including tablets, smartphones, GPS systems, eReaders and other computing devices.

The new facility is the second phase of SSPC’s manufacturing building in Pampanga, in which it invested USD 51 million for the expansion facility and another USD 4.3 million for the production equipment. SFA Group aims to make SSPC its manufacturing hub in Asia and is anticipating taking on more assembly contracts from new customers.

The company also produces DDR4 generation dynamic random access (DRAM) chips and eMMC cards in the first phase of its manufacturing plant.

(Sources: Philippine News Agency; BusinessWorld; Newsbytes Philippines)

Philippines On The Threshold Of Manufacturing Resurgence

February 2018

The Philippines through the Department of Trade and Industry (DTI) is implementing the Manufacturing Resurgence Program (MRP) as part of the government’s effort to achieve inclusive growth. According to DTI, the MRP aims to rebuild the existing capacity of industries, strengthen new ones, and maintain the competitiveness of industries with comparative advantage. It also targets to close the gaps in industry supply chains, provide access to raw materials, and expand domestic markets and exports for Philippine manufactured products.

The recent opening of Mitsubishi Motors Philippines Corporation (MMPC)'s stamping and welding facility in Sta. Rosa Laguna is the result of the MRP. The Japanese car manufacturer is the first participant to join the Philippine government’s Comprehensive Automotive Resurgence Strategy (CARS) program. The CARS program allocates up to USD 600 million in tax incentives to participants in exchange for their investments in manufacturing facilities and production of 600,000 units of cars over a six-year period.

MMPC has enrolled two car models in the program: Mirage and G4. With the establishment of the new stamping and welding facility MMPC can now produce 200,000 units of these models. At present 37% of the parts of Mirage and G4 are sourced locally, but at the end of six-year term it is anticipated that at least 50% of the parts will be manufactured locally.

Mitsubishi’s investment will definitely have multiplier effect to domestic economic activities especially for local parts producers, materials suppliers, down to logistics, jobs creation and additional income.

(Sources: Manila Bulletin, Mitsubishi Motors Philippines Corporation)

Russian Company To Build First Pipeline Coating Facility In The Philippines

January 2018

Russian company BT SVAP LLC met with the Philippines’ Department of Trade and Industry (DTI) and the Board of Investments (BOI) to discuss its investment plan in the country. The company is planning to put up a pipeline coating facility which will be located in Mariveles, Bataan which has access to both sea and land transportation.

The facility is anticipated to showcase innovative production technology in pipeline coating. It will be a pioneer technology in the Philippines which will serve as a channel for the exchange of technological knowledge, employment generation and open opportunities for the domestic and export markets.

(Sources: ABS-CBN News; Business Mirror; The Philippine Star)

Cargill Opens First Animal Nutrition Premix Plant In The Philippines

December 2017

Cargill has opened its first animal nutrition premix plant in the Philippines on the heels of growing demand from medium and large livestock farms and feed millers in the Philippines and South East Asian countries. The company recognized the region’s increased demand for meat and poultry products which drives the growth of local livestock farms and feed millers. The USD 12 million plant is located in First Bulacan Industrial Park in Malolos, Bulacan and will have 50 local employees. The manufactured animal nutrition premix solutions on this plant will be marketed under Provimi brand. Also in the same week, Cargill has opened a poultry processing facility, as a joint venture with Jollibee Foods Corporation.

Livestock husbandry is undergoing a transition in the Philippines - farms are consolidating and growing much larger, and thus require more sophisticated feed ingredients. Other feed manufacturers are also targeting the Philippine market, such as French animal nutrition group Neovia, which recently acquired a Philippines-based pig, poultry and aqua feed manufacturer, Popular Feedmill Corporation, to help deepen its reach into the Philippine market.

(Sources: Euro Meat News; Business Mirror; Manila Standard;

Norwegian Paint Company Opens Factory In The Philippines

November 2017

Jotun, a Norwegian paint conglomerate is opening its manufacturing facility in the Philippines this month. The facility is located in a 6.7 hectare plot of land in LISP III, Sto. Tomas, Batangas (in the Light Industry and Science Park III, an industrial and business estate) and will produce five million litres of quality paint products per year to supply coating requirements for Marine, Protective and Decorative segments. It will employ more than 70 employees. The company has invested more than 1 billion pesos (more than USD 19.9 million) on infrastructure, job generation and land acquisition.

The company has had a presence in the Philippines for more than 30 years. The market is important for them because it sees good growth prospects in the future, especially with the steady increase of investments in business areas where Jotun is relevant such as infrastructure and energy.

(Sources: Jotun; The Diplomat; The Philippines Star)

Truck Body Builder Locally Manufactures Modern PUVs

October 2017

Centro Manufacturing Corporation, a leading truck and body builder in the Philippines, has presented seven of the 16 prototypes of what could be the modern jeepneys in the Philippines in support of the government's PUV Modernization Program. The showcase, which happened as a side event at the 1st Philippine Auto Parts Exhibit held in Pasay City, introduced seven "Eco PUV", or ecologically-friendly and economically-viable public utility vehicles (PUV) that could replace the current and decade-old model of the Philippine jeepneys. These vehicles are either powered by Euro 4 engine or electricity (EVs) and have installed technology such as GPS, Wi-Fi, automated and fare collection system.

Other truck body builders that participated in the expo include Almazora Motors Corp., Centro Manufacturing Corp., Del Monte Motors, Hino Motors Philippines Corp. and Sta. Rosa Motor Works Inc. Meanwhile, the Philippine Bureau of Investments is creating an incentives package for assemblers who choose to assemble vehicle units locally. This will entitle a participant to USD 200 million worth of incentive package for the production of 200,000 units of cars over a six-year period.

The Jeepney Modernization project is part of the Philippines' aim to revive the country's automotive manufacturing industry through its CARS program. 

(Source: Manila Bulletin)

Rise in Halal Exports Expected In 2018

September 2017

According to the Department of Trade and Industry, the Philippines’ halal export revenues is expected to grow to USD 1.4 billion in 2018, up from the current USD 800 million. The Philippine government wants to tap opportunities in the halal market, which is a growing billion-dollar global industry, and has built a roadmap for its halal industry. Republic Act No. 10817 of 2016 instituted the Philippine Halal Export Development Program, helping the country to become more competitive in the USD 3.2 trillion halal global market..

The Philippines is hoping to attract FDI in halal agro-industrial and food processing facilities, and is encouraged by the fact that Gulf Cooperation Council countries are looking at investing in the halal sector in the Philippines. The country still has a small share in the global market for halal products despite having a captive market, a large population of Muslims in the southern part of the country. Presently halal products for exports made in the Philippines are mostly canned goods like sardines, which are mostly for Middle East countries.

The country is planning to create a standardised national certification scheme for halal products, and has issued guidelines for the accreditation of halal certification entities. Currently it has 5 certifiers: the National Islamic Dawah Council of the Philippines, Halal Development Institute of the Philippines, Mindanao Halal Authority, Muslim Mindanao Halal Certification Board, and the Halal International Chamber of Commerce and Industries of the Philippines.

(Sources: HalalFocus; Gulf Times)

Nestle Philippines Puts Up USD 39.2 Million Malt Plant In Batangas

September 2017

Food and beverage manufacturer Nestle Philippines is currently building a new proto-malt processing facility in Lipa, Batangas. Proto-malt is a key ingredient of its popular product Milo from processing cassava and barley. The USD 39.2 million facility occupying 5,400 square meters of land will be its third plant in its compound and will increase the total capacity to 35,000 metric tons (MT) of malt annually, significantly higher than the local demand of 25,000 MT.

The company is looking to export the excess production to Singapore, Malaysia and Africa which it described as huge Milo market. Nestle Philippines’ decision to put up the facility was due to large supply of cassava in the country and lack of qualified cassava processors that can turn it into powder that meet its standards. The construction was started in December 2016 and will be completed by October 2017 and is expected to operate a month after.

(Sources: Business World; Manila Times)

Holcim Philippines Increases Production Capacity

August 2017

Holcim Philippines, Inc. continues to invest in raising its cement production capacity from its current 10 million metric tons to 12 million metric tons to support demand as the government rolls out its flagship infrastructure projects. Holcim Philippines President and CEO Sapna Sood said the investments show the Company’s continued commitment to the development of the country and to serving its customers better.

Aside from raising its cement production capacity, Holcim Philippines is introducing more innovative building solutions and services to help the country build faster, cost effectively and sustainably. Already, Holcim Philippines is implementing 24-hour deliveries to key customers in Luzon, with those in the rest of the country to follow within the year, for immediate product availability for new homes, farm-to-market roads, new highways and essential infrastructure.

(Source: Holcim Philippines)

Top Frontier Plans USD 1.5-B Nickel Processing Plant

July 2017

The Philippines is currently considering banning exports of unprocessed minerals in an effort to promote value addition in the mining sector. This is already leading to its desired effect - San Miguel Corporation’s parent company, Top Frontier Investment Holding, has announced its plan to build a nickel processing plant in Surigao province near its Nonoc mining site. The project is estimated to cost between USD 1 billion and USD 1.5 billion. Top Frontier is currently doing a feasibility study for the nickel processing plant which will utilize high pressure acid leaching (HPAL) technology and is expected to finish before the year ends. The feasibility study will be followed by technical and financial studies.  The company is very optimistic about the feasibility of the project with an estimated annual output of 200,000 tons from resources good for 40 years, and has launched negotiations with several suppliers.

(Sources: The Philippine Star, Philippine Daily Inquirer)

Dyson Expanding In The Philippines

June 2017

According to the Manila Bulletin, British firm Dyson is investing an additional USD 20 million this year for the production of digital motors and assembly of finished products for the local and export market, on top of the USD 50 million it invested in the Philippines last year. Dyson’s local contract manufacturer produces the final product hair dryers and cordless vacuum cleaners. The Philippines accounts for close to 20% of Dyson’s total production globally. The company has plans to expand its workforce from 320 workers to 400 by end 2017, and to 500 by 2018.

(Source: Manila Bulletin)

Ford Philippines Posts Record Sales

May 2017

Sales of the local unit of American automaker Ford Motor Co. soared to its best-ever performance in May, putting the company on track to post record sales figures by year-end. Ford Philippines said sales for the month of May reached a record 3,036 units, up four percent from the same month last year.

The popular Everest SUV led the May performance with sales remaining steady from the same month a year ago at 1,061 vehicles. The Everest is Ford’s best-selling nameplate in the Philippines with year-to-date sales totaling 4,629 vehicles. The EcoSport compact SUV delivered May sales that rose 7% from a year ago to 908 vehicles as it continues to enjoy wide appeal among Filipino customers.

Ford’s North American-built models contributed to the record May total. Sales of the premium Explorer SUV increased 73% from a year ago to 126 vehicles. The Mustang delivered monthly sales of 31 vehicles.

The Department of Finance expects robust vehicle sales in the country to continue even as the higher excise taxes to be slapped on vehicles loom.

(Sources: The Philippines Star, BusinessMirror, The Manila Times)

Epson Bullish On Philippines Sales

April 2017

Epson Philippines Corp., the local unit of the Japan-based printing giant, remains bullish on its business in the country, driven by the strengthened capacity of its manufacturing operations. The company expects its sales to grow at double-digit in the fiscal year ending March 2018, after posting a 21-percent increase a year earlier, driven by strong demand in the provinces.

In 2016, Epson said it would be spending around PHP 4.7 billion for the expansion of its manufacturing plant located in Lipa, Batangas. The company official pointed out its Philippine factory is the biggest compared to its Asian peers in terms of production output size.

The rising incomes of the Filipinos is a factor in driving the company’s growth in the country. In addition, the transfer of technology is easier as Filipinos speak good English. Epson is the market leader in the inkjet printers, projectors and point-of-sale printer categories in the Philippines.

(Sources: The Philippines Star, The Standard)

Cement Manufacturers May Put Up More Plants

March 2017

Cement manufacturers are lining up to set up plants in the Philippines to capitalize on the country’s “golden age of infrastructure.” The Department of Trade and Industry reports that all the existing players are planning to expand with some even importing because the country’s cement demand is bigger than its supply. Under the approved Investment Priorities Plan, cement activity has qualified for incentives under manufacturing to encourage more players in the cement industry. 

Two new greenfield projects in the sector could also be expected—one from an entirely new local player and the other will be from an existing importer. A greenfield cement project could cost up to USD 500 million.

The current administration is ushering in the era of the golden age of infrastructure for the country with a national infrastructure budget of around PHP 8 trillion (USD 159mn) until 2022 which is expected to drive the demand for cement in the country.

(Sources: Philippine Star, Malaya)

Panasonic Expects Revenue To Hit PHP 12BN

February 2017

Panasonic Philippines Manufacturing Corp (PPMC) announced that it expects its revenue to reach PHP 12 billion (USD 230 million) in its next fiscal year, starting April 2017 to March 2018, as it shifts its marketing strategy to rolling out more energy-efficient consumer durable goods. The company is moving aggressively to capture a bigger market share with plans to unveil more models within the current product range using inverter technology.

Panasonic will bring in Japan’s inverter technology to power locally-manufactured goods running on motors such as washing machine, refrigerators and air-conditioners. With more Filipinos (especially in Luzon and other urban centers) being able to afford the medium to high-end models, the company said they are responding to this demand by offering its Japan quality-made products.

PPMC also exports window-type air-conditioners and mid-level refrigerators to Hong Kong. Exports account for 20% of the company’s total annual sales. The company maintains and operates manufacturing plants in Taytay, Rizal, where it produces export-quality refrigerators, washing machines, air-conditioners and electric fans.

(Sources: Manila Standard, Manila Bulletin)

Finnish Firm Plans USD 200 Million Rubber Plant In Mindanao

January 2017

Finland-based tire manufacturer Black Donuts Engineering Inc. plans to put up a USD 200 million rubber manufacturing plant in Mindanao in the next two years, the Department of Agriculture said. The plant is expected to cater to domestic consumption for the production of tires for cars, pick-up trucks and other small vehicles.

Black Donuts is eyeing Davao region for its expansion due to the area’s accessibility to seaports and airports. The company announced that the growing demand for automobiles, particularly in Southeast Asia, makes the Philippines a viable market.

Black Donuts targets to produce 4 million vehicle tires annually from the Philippines if the project pushes through. This translates to an annual demand of 16,000 metric tons of rubber.  According to the data of the Philippine Rubber Research Institute, the country produced some 110,000 metric tons (MT) of rubber in 2016, higher than the 100,000 MT level in 2015.Among all regions, Zamboanga Peninsula has the highest production of rubber at 47,910 MT last year. This was followed by Soccsksargen at 43,500 MT and ARMM, respectively. 

(Sources: The Philippine Star, BusinessWorld)

Phoenix Semiconductor To Invest USD 100 Million In PH To Expand Capacity

December 2016

Officials of Phoenix Semiconductor Philippines’ parent company in Korea, SFA Semicon Co. Ltd., is expected to pour in at least USD 100 million in local operations to expand capacity. Phoenix Semiconductor is one of the Philippines’ top semiconductor product manufacturers and exporters which produces units in its facility in Clark Freeport, Pampanga. 

The company plans to construct a manufacturing building with an initial production footprint of 18,000 square meters (sqms), a new 1,000-sqm warehouse, and an expansion power utility building within its 15-hectare facility. The new facilities will mainly cater to the company’s new client other than its major customer, South Korean electronics giant Samsung.

Their productivity in the Philippines, better security, and economic environment reportedly encouraged them to consider expanding their Clark operations that will generate more than 1,000 new jobs from now until 2018.

(Sources: BusinessMirror,

Philmech Inks 5-Year Farm Machinery Deal with South Korean Manufacturer

November 2016

The Philippine Center for Postharvest Development and Mechanization (PhilMech), an agency attached to the Department of Agriculture, has entered into an agreement with the Korea Agricultural Machinery Industry Cooperative (Kamico) to enhance the skills of Filipino agriculture engineers and upgrade the capabilities of PHilMech in developing farm machinery.

Kamico, a special status nonprofit corporation of agricultural machinery manufacturers, spearheads the export efforts for South Korea-made farm equipment. The agreement is in line with PhilMech’s goal to upgrade the manufacturing and design capabilities of the farm machinery industry in the Philippines.

PhilMech expects that more Filipino farmers will be able to mechanize their operations in the coming years as Korean agricultural machinery manufacturers collaborate with the locals to develop appropriate machines and equipment for agriculture. Tapping the expertise of Kamico will also help the Philippines manufacture farm machinery including local fabrication of small engines that are critical components of farm equipment in the country.

(Source: BusinessMirror, Philmech)

Polish Firm Opens US$2 Million Manufacturing Plant In The Philippines

October 2016

Poland-based Pietrucha Group opened a USD 2 million production plant in the Philippines, marking its first greenfield investment in the country. The plant, a project of Pietrucha Group and Filipino company Design Science Inc, will produce vinyl sheet piles which would be supplied to markets across South East Asia. The plant will supply specialized technical profiles used in the civil engineering sector in flood prevention and protection projects and other land and water infrastructure investments.

The Philippines’ growing infrastructure sector, its strategic location in the region, as well as the local partner were key reasons for Pietrucha Group in choosing to establish a base in the Philippines. Apart from catering to the booming local construction market, the plant will also serve as an export base to other ASEAN markets. 

(Sources: The Philippine Star, BusinessWorld)