Babcock-Hitachi picks RP for P475-M project

The Philippines has been chosen over Canada for Babcock-Hitachi’s new project involving the manufacture of heat recovery steam generator (HRSG).

Babcock-Hitachi (Philippines) Inc., which is 80-percent owned by Babcock-Hitachi K.K. Japan and 20 percent by Filipino-owned Atlantic Gulf & Pacific Co. (Mla), a corporation engaged in the manufacture of boiler heat exchanger, gas duct and boiler components since 1989, is investing P475 million for its new HRSG plant to be located in San Roque, Bauan, Batangas.

The Philippines was chosen as the site for the project over Canada by Babcock-Hitachi’s mother company.

Currently, the manufacture of HRSG is being done at the Noumi Works Division of Babcock-Hitachi Japan.

Bacbock-Hitachi (Phils.) recently got pioneer status registration from the Board of Investments (BOI) which would entitle it to tax incentives.

The BOI approved Babcock-Hitachi (Phils.) pioneer status because the HRSG project is the first of such venture in the country and is envisioned to draw Babcock-Hitachi attention to the Philippines’ attractiveness as an ideal site for major industrial facilities.

The BOI also noted the fact that the National Power Corp. and prime power generating plants import their HRSG requirement from Korea or elsewhere, hence the project would not only generate export revenues but dollar savings as well.

The BOI noted that the project is expected to generate a substantive socio-economic impact through direct and indirect labor generation and may provide a ready access to the need for sufficiency in power supply requirement should one arise.

It will generate employment for at least 81 employes with a projected annual payroll of P8.432 million.