German Firm Invests USD 16 Million Machine Parts Factory in Batangas

February 2023

German company Zama Group is continuing to expand its production capacity with the construction of an 11,000-square-meter facility in Batangas, which is expected to be operational by February 2024. According to Zama Philippines president Ronald Wienholts, this new facility will allow the company to produce electro-mechanical technologies, wire harnesses, and textile materials, as well as explore other business ventures.

Zama Group is the world’s largest manufacturer of diaphragm carburetors and a major supplier of chain lubrication solutions and tensioning kits for chainsaws. Aside from the Philippines, the company also has production plants in Japan, Hong Kong, China, and the United States.

The German-Philippine Chamber of Commerce and Industry, Inc. (GPCCI) noted that this expansion is part of a “China Plus One Strategy” which allows companies to diversify and explore investment opportunities outside of China. A survey conducted by GPCCI in November 2020 revealed that 53% of German firms in the Philippines reported being in a better situation, while the biggest risk they faced was supply chain disruption. Other challenges they faced included high electricity costs, high raw material prices, and fluctuations in foreign exchange rates.

(Source: Business Inquirer)

Our Services

Orissa International provides consulting services to companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 distributors, resellers, and system integrators, built through advising and guiding more than 5,000 companies with their market expansion into Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines over the last 25 years.