Bosch builds hub in Mandaue, comes full circle

INDUSTRIAL and automotive tools maker Bosch opened its first business hub in Mandaue City yesterday, an expansion that marks the company’s first foray outside of Metro Manila, top officials said.

Martin Hayes, president of Bosch Southeast Asia, said their decision to set up a business hub here is backed by the positive business climate of the country, including the investment rating it got.

The Philippine economy also registered 7.8 percent growth in the first quarter this year.

“Southeast Asia is currently the fastest growing region for Bosch. The size of the Filipino domestic market holds great potential for Bosch to expand our op- erations beyond Manila into other cities,” said Hayes.

Bosch, which penetrated the Philippine market in 1928, began the business in Cebu, distributing automotive parts. It was only this year that the company decided to set up a business hub here.

“It was logical for Bosch to come back to its roots in the Visayas and expand into this region and give Cebuanos access to the most fascinating products in the market today,” he said.

The company said Cebu presents opportunities with its population, high spending power, and robust growth in the real estate, business process outsourcing, and tourism industries.

It added they also see prospects in the province’s thriving construction industry, as the local demand for commercial and housing units continues to increase.

“There is a tremendous growth in sales and market interest generated from Cebu alone that makes it economically viable for us to expand into,” said Joseph Hong, managing director of Bosch Philippines.

Hong said their presence in Cebu will enable them to better serve the Visayan region with their diverse range of products and solutions across industries.

The Cebu business hub is a two-storey, 225-squaremeter facility located along Lopez Jaena St. in Mandaue.

Bosch Group generated sales of 52.5 billion euros last year fueled by its automotive business, which accounted for 60 percent.

Since the beginning of this year, the company was divided into four business sectors: automotive technology, industrial technology, consumer goods, and energy and building technology. The company is represented in 150 countries.

In the Philippines, Hong reported the firm posted double-digit growth last year. He forecasts the company to further grow this year given their expansion in Cebu, which he described as a key market.

Aside from tapping Cebu’s construction industry, Hong added they will also take advantage of other booming industries the province is known for, like automotive, shipbuilding and manufacturing, among others.

Sangjo Park, country sales director for Bosch Automotive Aftermarket, said the firm will take advantage of the automotive industry as domestic demand for automotive products is expected to remain robust this year.

The Chamber of Automotive Manufacturers of the Philippines (Campi) reported that automotive sales grew 11 percent last year to 156,659 vehicles, from 141,170 in 2011. Car sales rose by 29.3 percent in the first quarter this year to a record high of 41,702 units, Campi said in a joint statement with the Truck Manufacturers Association of the Philippines.

Hayes said it is the continued expansion of the middle-income market segment that will continue to fuel growth in the automotive industry.

To provide expertise in the field of automotive electronics, Bosch established a Bosch Car Service workshop and a Bosch Diesel Service in Cebu. Both offer professional diagnosis, maintenance and repair services for all gasoline and diesel vehicles.

In cooperation with a local distributor partner, Bosch also sells its power tools in 13 showroom locations across Cebu.

After Cebu, Hayes said they are planning to expand operations to other key cities like Davao.