Japanese bicycle manufacturer Shimano Inc will put up a factory in the Philippines, Ambassador Toshinao Urabe of Japan said.
Shimano is one of “quite a few” Japanese firms that consider the Philippines a viable investment destination, Urabe said.
On its website, Shimano said the Philippine facility will be operated by its subsidiary, Shimano (Singapore) Pte Ltd.
The investment was made “to set up its production system in order to enhance its production capabilities for the emerging market,” the company said.
The investment for Shimano (Philippines) Inc is worth 3.5 billion Japanese yen or at least P1.5 billion.
The factory will churn out bicycle components and mountain bikes, which will be exported to the so-called BRICS markets, said JCCIP vice president and executive director Nobuo Fujii.
BRICS refer to Brazil, Russia, India, China and South Africa.
The Shimano facility will rise on a 106,620-square meter site within the First Philippine Industrial Park in Tanauan City, Batangas. Construction of the factory will start next month, Urabe said.
Shimano’s Philippine facility should be completed by July next year, as operations are slated to begin in December 2014.
Osaka-headquartered Shimano produces and distributes bicycle components, cold forging products, fishing tackle and rowing equipment, its website said.
The company has 44 consolidated subsidiaries with over 12,000 employees.
(Story courtesy of Ben Arnold O. De Vera, InterAksyon.com)