MANILA, Philippines - Japanese maker of bicycles and parts Shimano Inc. has opened its P1.32 billion (¥3.5 billion) facility in Batangas for the manufacture of bicycle parts for export.
According to First Philippine Industrial Park (FPIP), Shimano’s Factory, which is located within a 13.03-hectare area in FPIP in Sto. Tomas, Batangas, would manufacture various bicycle components mainly for the export market.
The facility, which is the Japanese firm’s first in the country, would employ 1,000 workers once in full operation.
The establishment of Shimano’s production operation in the Philippines is timely as the country has just been granted beneficiary status of the European Union’s (EU) Generalized System of Preferences Plus (GSP+).
The EU GSP+ allows developing countries to export 6,274 products to the EU at zero tariff.
The EU GSP+ status of the Philippines is expected to benefit Shimano as the scheme would eliminate import duties on bicycles and parts.
According to Bike Europe, the leading website for news and market reports for bicycle professionals worldwide, even before the Philippines secured the GSP+ status, the country’s bicycle exports to the EU were already growing rapidly.
Given the EU GSP+ status, there is opportunity for the Philippines to position itself as a major producer of bicycles and parts.
Aside from the EU, Shimano is looking to tap and get a bigger share of the market in Brazil, Russia, India and China amid expectations of strong demand there.
Established in 1921 in Osaka, Shimano currently has over 40 factories and sales offices with close to 13,000 employees in more than 20 countries.
Shimano is among the growing list of FPIP locators which include B/E Aerospace, Brother, Canon, Honda, Ibiden, Murata, Nestle, Philip Morris and Sunpower.
FPIP is a joint venture between First Philippine Holdings Corp., a holding company of the Lopez Group, and one of Japan’s biggest conglomerates Sumitomo Corp.