French firm bullish on Cebu operations

CEBU, Philippines — French company Delfingen remains bullish on its operations in Cebu, which is central in its Asian operations.

The global automotive supplier, which has been operating in Cebu for 17 years now, has two manufacturing plants in the Mactan Export Zone (MEZ) 2 in Lapu-Lapu City.

In an interview last Saturday, Damien Personeni, Delfingen executive vice president for global business development, said the firm’s Cebu plant, which has a total land area of approximately 7,000 square meters, is its biggest in Asia.

The French firm only had 40 workers when it started in 2000 but it has since grown to 230 workers. 

Three years ago, the company built a plant in Cavite which now has around 60 workers and serves the Japanese market.

Delfingen manufactures on-board networks protection solutions and fluid transfer tubing, working closely with carmakers, automotive supplier and industrials. 

Its Cebu plant directly exports to Vietnam and Indonesia clients.

In Cebu, its main customer is American firm Lear Corp., a global supplier of automotive seating systems and electrical systems, which also has a plant in MEZ 2.

Personeni said its Cebu operations are vital to its goal of further expanding in Asia, which produces 50 percent of cars in the world today. 

“The Philippines has been for many years our flagship and has been central to our operations,” he noted.

The official cited that the English speaking Filipino workforce has been very helpful in the company's operations in the Philippines.

He said the improving infrastructure is also helping economic zone operators expand.

One advantage of its Cebu plant is its proximity to the company's main clients.

"Our products are very bulky and the automotive industry is very demanding in terms of just-in-time delivery," Personeni said.

MEZ 2 is a partnership between the government and Aboitiz Land Inc. which is is developing and operating the zone under the Build-Operate-Transfer scheme (BOT) for the landowner, Mactan-Cebu International Airport Authority (MCIAA). The 63-hectare MEZ 2 is regulated by the Philippine Economic Zone Authority (PEZA).

As of 2012, MEZ 2 has a total of 54 locators, based on the Lapu-Lapu City government website.

Aside from MEZ 2, Lapu-Lapu City is also home to the Mactan Export Processing Zone (MEPZ) 1 which is a 120-hectare industrial estate in the city.

It started out with 8 companies in 1986. Twenty-four years later, MEPZ 1 has 148 locators, reflecting the fast-paced economic development that is happening in Lapu-Lapu City. 

It is an industrial tax-free zone. Factories in MEPZ 1 deliver world-class products to the United States, the European Economic Community and Japan.

Such products include watches, semiconductors, electrical equipment, garments and precious jewelry. (FREEMAN)