Bicycle parts maker Shimano opens $30M factory in Philippines

shimano

TOKYO-listed Shimano, Inc. said it spent $30 million building its first factory in the Philippines that will manufacture bicycle parts for exports to the European Union (EU), taking advantage of a duty-free entry regulators there recently granted to the Philippines.

Shimano, through its local unit Shimano Philippines, Inc., formally inaugurated its 13.03-hectare factory within an industrial park in Santo Tomas, Batangas on Jan. 9.

That 442-hectare industrial area — First Philippine Industrial Park (FPIP) — that is owned by the Lopez group, is also home to multinational companies B/E Aerospace, Brother, Canon, Honda, Ibiden, Murata, Nestlé, Philip Morris and Sunpower.

Shimano’s opening came a few weeks after the country’s successful inclusion in the EU’s Generalized Scheme of Preferences Plus (GSP+) tariff reduction program. That GSP+ status, which meant 6,274 Philippine products such as fruit, coconut oil, footwear, fish and textiles, will be charged zero duty, took effect on Dec. 25.

“The Shimano Philippines facility, the Japanese firm’s first in the country, will manufacture various bicycle components mainly for the export market,” the statement read.

The Japanese bicycle parts manufacturer will be hiring 1,000 workers at its Batangas plant.

Established in 1921 in Sakai City, Osaka, Japan, Shimano now operates over 40 factories and sales offices with close to 13,000 employees in more than 20 countries. As of Sept. 30 last year, its net sales amounted to roughly $2 billion, while its net income reached $29 million.

(Businessworld Online)
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