Aboitiz unit, Kurabe Industrial ink deal
TOKYO, Japan – Committed to attracting foreign investment to the Philippines in order to generate jobs for Filipinos and stimulate the economy, Aboitiz Infracapital (AIC), the infrastructure arm of the Aboitiz Group–together with the Philippine Economic Zone Authority (Peza) – signed an agreement with Japanese manufacturing company Kurabe Industrial Philippines, Inc. The deal ushers in Kurabe’s official entry into the Philippine market to build a manufacturing facility within AIC’S LIMA Estate in Batangas.
The Aic-kurabe deal, signed in Tokyo, Japan, last November during the Philippine business delegation’s Japan Roadshow, follows the registration agreement between PEZA and Kurabe, which classified the Japanese company as an ecozone export enterprise.
The deal with AIC includes Kurabe’s purchase of a 5.9-hectare property within the 800-hectare LIMA Estate in Batangas, which offers industrial lots to foreign and domestic companies interested in expanding operations in the country.
Locators within LIMA Estate can maximize the full suite of services for construction, power, and water utilities provided by Aboitiz affiliates. With AIC’S leadership in master-planning smart and sustainable industrial-anchored developments, businesses and multinational organizations, like Kurabe, are assured that they can operate with ease and that their needs and demands are addressed efficiently.
“Considering the strategic location of LIMA Estate, the incentives we get with our registration to PEZA, and Aboitiz Infracapital’s readiness and expertise to cater to foreign locators, we have decided that the Philippines is the best location to disperse our business,” Kurabe Co. Ltd. President and CEO Kanazawa Takenobu was quoted in a statement as saying. “Aboitiz Infracapital is undoubtedly our choice partner for this expansion, given its well-established reputation and its strong relationship with Japanese business owners. Knowing that a dedicated Japanese team from AIC is accessible to meet our needs provides us with a sense of security and comfort.”
2,000 workforce
KUR ABE’S deal with AIC will result in a P2B investment from the Japanese manufacturer for its business expansion within AIC’S LIMA Estate. The investment is earmarked for land, the acquisition of factory equipment, and the eventual construction of the facility which is slated to break ground in 2024.
Upon completion, Kurabe’s factory is expected to recruit a 2,000head workforce from Batangas and its adjacent areas. The facility will manufacture and assemble primarily Kurabe’s automotive products, such as car seat heaters and wiring, and steering wheel heaters and wiring.
“AIC shares the success of this deal with PEZA and our partners from the Department of Trade and Industry (DTI). On behalf of the Philippine delegation at the Japan Business Roadshow, we welcome Kurabe Industrial to the Philippines, and to LIMA Estate. This partnership demonstrates our shared commitment to attracting foreign investment to the Philippines—which aims to generate employment, boost commerce and local trade and reinforce the economy,” said AIC Economic Estates Head Rafael P. Fernandez de Mesa.
In recognition of AIC’S partnership with Japanese companies, Fernandez de Mesa highlighted how “as of today, LIMA Estate is home to over 70 Japanese companies, who are providing thousands of jobs to our skilled Filipino workforce. AIC and our Economic Estates will remain committed to ensuring our developments continue to be an attractive location for Japanese investors to base their operations in the Philippines.”
As Aboitiz Group’s infrastructure arm, AIC is a leader of smart and sustainable industrial development and operation in the Philippines. To accommodate demand from investors, AIC broke ground earlier this year on a 57-hectare expansion within LIMA Estate, which is part of a larger 150-hectare expansion. The market has responded very enthusiastically to the expansion, and to serve additional future demand from companies looking to capitalize on the benefits of locating in the Philippines, beyond the 150 hectare expansion, AIC projects to bring to market an additional 450 hectares within the next 10 years. The Estate currently has approximately 65,000 employees, with the projected headcount expected to grow to 100,000 by the end of the decade.