Shimano Philippine Factory Opened
MANILA, Philippines – Shimano added the next factory on its list of more than 40 facilities and sales offices worldwide with the opening of a new plant at the First Philippine Industrial Park (FPIP) in Santo Tomas, Batangas.
According to a report on the Philippine website ABS-CBN News Shimano invested JPY 3.5bn (30mn euro) employing 1,000 people to support the Philippines’ position as a bicycle producer. Shimano Philippines will manufacture various bicycle components mainly for the export market.
The establishment of Shimano’s production via its subsidiary Shimano Philippines Inc., came just weeks after the European Parliament voted to include the Philippines in the EU’s Generalized System of Preferences Plus (GSP+) program. This will allow duty free access of Philippine made bicycle to the European market and improve the country competitiveness over other countries in the region like Cambodia and Bangladesh who already part of the GSP+ program.
Before the GPS+ rating, the Philippines’ bicycle exports between January and October 2014 stood at 702,618 units, up 8.76% from the same period in 2013. This number is expected to increase substantially with the inclusion of the Philippines in the EU’s GSP+ program.
Shimano’s investment at the First Philippine Industrial Park (FPIP) is a 70-30 joint venture with the ‘First Philippine Holdings Corporation (FPH) a holding company of the Lopez Group and Sumitomo Corporation, one of Japan’s biggest conglomerates. Recently FPIP received government approval for its 92-hectare expansion plan, called FPIP Special Economic Zone II.