German firm opens $50-M plant in Batangas

Rosette Adel - Philstar.com

MANILA, Philippines — German company STIHL Group on Sunday announced the opening of a new production plant in Santo Tomas, Batangas

STIHL Group subsidiary Zama, a manufacturer of carburetors for small off-road engines, held the inauguration of its new production plant on January 20.

The new production plant with total investment amounting to US $50 million, covers a total land area of almost 60,000 square meters and offers an estimated 22,000 square meters of production, warehouse and office floor space.

The series of production is slated to start in April 2016. It is projected to produce about 2 million carburetors in 2016.

STIHL Advisory and Supervisory Chair Nikolas Stihl said the new production plant with 650 workforce of men and women is a milestone in the history of STIHL and Zama.

"The acquisition of Zama in 2009 has turned out to be a good decision. I am very proud to be able to add the newly built production plant in the Philippines to our international manufacturing network," Stihl said.

The company said the Philippines is an attractive location for having favorable industrial site conditions compared to other Asian countries. The country is also considered as one of the fastest-growing economies in the Asia-Pacific region with the plant situated in a special economic zone or the First Philippine Industrial Park.

STIHL Executive Board Chair Bertram Kandziora said he expects the production plant to supply products overseas.

“We expect further worldwide growth and have created additional capacity with this new project. It enables us to consolidate and grow our present market share, minimize risks and, at the same time, keep customer satisfaction at a high level. In addition, it will increase our competitiveness," Kandziora said.

Zama Group is the world’s largest manufacturer of diaphragm carburetors. It is also a major supplier of chain lubrication solutions and tensioning kits for chainsaws and a technology leader in these fields with plants in Japan, Hong Kong, China and the United States.

RELATED: STIHL Group allots P2.5 B for Batangas plant

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