MANILA, Philippines — Japanese firm Leading Co. Ltd. plans to invest in wiring harness manufacturing operations in the Philippines, the Department of Trade and Industry (DTI) said.
In a statement, Trade Secretary Ramon Lopez said Leading is entering the country this year to set up a 1.7-hectare factory in Lima Land’s industrial park in Batangas for the production of wire harnesses.
“The plant in Batangas is targeted to produce $12 million worth of wiring harnesses annually for export to the US,” said commercial counselor Dita Angara-Mathay, who leads the DTI office in Japan.
She said the company intends to establish a wholly owned Philippine subsidiary within the third quarter.
Leading is among the firms present during the online briefing held with Lopez and other DTI officials last April 20 to discuss the Corporate Recovery and Tax Incentives for Enterprises Act.
The DTI expects the recently signed law to allow the country to attract investments given changes in the incentives system.
“We welcome the expansion of Leading in the Philippines as it will not only generate foreign currency for the country, but also create thousands of jobs for Filipinos,” Lopez said.
“More importantly, the company’s willingness to invest in the Philippines signals on the ground their confidence in the country’s strong fundamentals and as a top investment location in the world,” he said.
Apart from wiring harness manufacturing, Leading other business groups are trading, electricity and assembly.
To ensure just-in-time delivery, Leading Co. has a streamlined and efficient process for production scheduling, component procurement, assembly, continuity checks and visual inspection.
Mathay said the DTI plans to continue to encourage wire harness players to expand operations in the country.
“We plan to hold regular consultations with wiring harness players to explore how they can be enticed to produce more high-tech products, which are needed to support the growing interface between electronics hardware and software. Wiring harness applications have been expanding beyond the automotive sector to cover the telecommunications and medical industries. Our Philippine engineers can certainly contribute to investor plans to upgrade products and processes,” she said.
Lopez earlier said six Japanese firms are investing a combined P10.5 billion for wire harness manufacturing in the country. The projects will create over 18,650 additional jobs.