The Philippine Board of Investments (BOI) recently approved three expansion projects in the manufacturing sector with a combined investment amount of PhP6.95 billion.
BOI approved Metalcast Corp.’s Php100 million project as an expanding producer of aluminum die cast parts for motorcycle and automotive parts along with the Php2.86 billion project of Philippine Resin Industries, Inc. (PRII) for the manufacture of suspension type polyvinyl chloride (PVC) resins and the Php3.99 billion project of San Miguel Yamamura Asia Corp. (SMYAC) as an expanding producer of glass containers.
“Investor confidence is real. The Philippines continues to be a magnet for investments, and this is due to the country’s improving business environment, sound macroeconomic policy, political stability, favorable demographics, and of course, our people, who have always been the country’s prime asset in attracting foreign investments,” Trade Secretary and BOI Chairman Ramon Lopez said.
“The influx of these expansion projects is expected to sustain the growth momentum of manufacturing from last year as the sector posted robust growth in terms of investments to meet not only the strong domestic demand but also to fuel the export growth of the sector,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo meanwhile said.
He noted these projects capitalized on the momentum of the surge of manufacturing investments recorded by the BOI in 2017 to Php96 billion, up 95 percent from PHp49.3 billion in 2016.
Secretary Lopez earlier announced that investments in manufacturing surged by 244 percent, posting a record of US$ 1.15 billion inflows. The figures account for 35 percent of the US$ 3.3 billion equity capital placements in 2017.
Secretary Lopez made the statement following the Bangko Sentral ng Pilipinas’ (BSP) report that the 2017 net foreign direct investments (FDI) hitting an all-time high US$10.1 billion, surpassing expectations to expand by 21 percent, over the US$8.3 billion recorded in 2016.
According to the BSP report, over 21 industries received FDI inflows. One-third of the total equity placements were attracted to manufacturing industry while the other industries which received bulk of total inflows include gas, steam and air conditioning supply; real estate; construction; and, wholesale and retail trade activities.
“The manufacturing industry has been delivering on its promise to be a pillar of economic growth in the country. Since 2012, the Department has intensified its campaign and link in efforts of both government and private sectors to revitalize the manufacturing industry,” he said. “The sector remains a highly viable investment area and a source of meaningful and well-paying jobs for the people,” he added.
Food manufacturing, as well as production of radio, television, and communication equipment and apparatus; chemical and non-chemical products; fabricated metal products; basic metal and non-metallic mineral products, have been identified as vibrant manufacturing sectors.
Top sources of foreign equity investments are Singapore, Japan, The Netherlands, United States, and Luxembourg.
The Php100 million expansion of Metalcast Corp. involves the installation of additional facilities and equipment and will boost the existing 2,850-ton capacity with an additional production of 1800 tons a year in its existing plant in Carmona, Cavite. Formal operations has already begun in January 2018 with an additional 75 personnel to support the facility.
Domestic clients of Metalcast include automotive and motorcycle assemblers located at the Philippine Economic Zone Authority. At least 60 percent of its production are for exports to major automotive clients in Thailand and Japan.
PRII’s Php2.86 billion expansion in its plant in Mariveles, Batan meanwhile will provide an additional 120,000 metric tons (MT) to its current 100,000 MTPY capacity. Formal operation is expected to start January 2019.
The firm will be employing a state-of-the-art technology acquired through a licensing agreement with Japan-based Tosoh Corporation which is one the largest chemical and specialty materials companies in Asia. The technology is expected to introduce various improvements in the production of resins with breakthrough patented processes resulting in reduced batch cycle time and polymerization time. The expansion will focus mainly on producing K65 resin grades which are used by its clients in the production of pipes and accounts for nearly 60 percent of its market. It can also produce other grades depending on demand.
SMYAC on the other hand is investing Php 3.99 billion in the construction of a new building and the installation of a new glass facility in a 32,000 square meter lot in its existing plant in Imus, Cavite. The expansion project will utilize the latest machinery and equipment in the glass manufacturing industry with some technological innovations/improvements to its existing facility. The project will have a production capacity of 92,517 MT to complement the firm’s existing 145,701 MTPY capacity. It will be capable of producing all kinds of container glasses with sizes ranging from 45ml to 1250ml.
The expansion of SMYAC aims to address the increasing demand for glass packaging products in the country and export markets. Around 60 percent of its production is for its domestic clients in the beverage/beer and spirits category. The remaining output will be exported to wine and food producers based in Australia and New Zealand. The plant is scheduled to operate on March 2019 with a manpower of 138 personnel. (END)