Japanese firms further expanding in Phl ecozones
Four Japanese firms operating in the country’s economic zones have announced expansion projects in the coming years, deemed to result in more revenues to be poured into government coffers and, at the same time, produce more jobs for the Filipino workforce.
During an Economic Seminar organized on 5 March in Tokyo, by Sumitomo Mitsui Banking Corporation, Japan’s largest banking institution, Philippine Economic Zone Authority director general Tereso Panga met with top honchos of shipbuilding firm Tsuneishi, electronic companies FCC-SIIX Corporation, and IMES Japan, as well as Japanese MSME TOM’S Manufacturing.
SMBC hosted the seminar following a memorandum of understanding signed by them with PEZA and Rizal Commercial Banking Corporation last January 2024 to entice more Japanese corporate clients to investment opportunities in the Philippines, particularly in the economic zones under PEZA.
Fifth phase
During the business-to-business meeting with Tsuneishi, the company representatives told DG Panga that it is ready for its fifth phase of expansion which will cover several big-ticket projects such as its new wood pelletizing business and manufacturing of the world’s first methanol-fueled TEU container carriers.
In its 29-year operations in the Philippines, the company has seen four re-expansions since it first started its shipbuilding business in Balamban, Cebu, growing from a modest 25-hectare footprint to now having a 170-hectare-proclaimed area.
The company is also known for consistently increasing its employment, from employing 300 workers in its first entry to now being responsible for around 10,000 direct and subcontracted workers.
‘Philippine ecozone locators shipbuilding firm Tsuneishi, electronic companies FCCSIIX Corporation and IMES Japan, as well as Japanese MSME TOM’S Manufacturing have indicated that they will be expanding their operations in the country.’
Crucial role
Also, Panga met with SIIX Co., Ltd. led by its President Koji Yanase. SIIX, a Japanese Electronics Manufacturing Services provider currently ranked number 17 in the world in 2022, expressed that owing to their longstanding history of doing business in the Philippines, they see their Philippine operations playing a crucial role as they expand their core business and enter new territories.
The Yanase also shared that it will manufacture its patented conductive ink in the Philippines.
Since 1957, SIIX has been engaged in business in the Philippines, and first established their ink production offshore operations in the country.
Lastly, FCC Co., Ltd., led by its President Yoshitaka Saito, shared that the company expects its Philippine operations to grow in the next few years, involving several projects such as the manufacturing of the clutch for Honda Click 125, production of paper ceramics for other electronics component manufacturers, and investment in new advanced technology businesses that will involve the assembly line for scooters, lining molding line and weight line.
Circular economy promotion
In addition to its core business, Saito told Panga that FCC is also looking at incorporating new businesses such as the promotion of a circular economy in the Philippines using solid oxide fuel cells for water filtration and production of solid biomass fuel.
FCC has consistently dominated the global market share of motorcycle clutches and is considered one of the biggest players in automotive clutches.
With around 140 participants, Panga provided an overview of PEZA and its ecozones, highlighting its ecozones as the optimal location with its business ecosystem for potential investors, emphasizing PEZA’s renowned one-stopshop function and the country’s advantages as an attractive manufacturing hub for Japanese companies.
To date, Japan stands as PEZA’s largest investor, contributing to a 28 percent share in total investments, generating P798 billion, $16.3 billion in exports, and creating 342,845 direct jobs across 877 PEZAregistered business enterprises.