German firm expands RP operations

Temic Automotive (Phils.) Inc., which is owned by Continental A.G. of Germany, is investing a total of $90 million (euro 77.2 million) for the period 2004 to 2007 to expand its manufacturing operations in the country which will result in a doubling of Temic’s exports of sensor clusters and anti-lock braking system or ABS.

A major portion of the $90 million was spent for Temic’s new plant in Calamba, Laguna which opened last year and produces automotive sensor clusters.

Temic’s other, much larger plant in Taguig produces electronic brake systems.

Temic’s Taguig plant is reportedly one of Continental’s biggest electronics plants.

The Taguig plant employs close to 1,600 workers and produces six million units of ABS.

For this year alone, Temic is projecting a 10 percent increase in its production and export of ABS for a turnover of euro 250 million.

For its Calamba plant, Temic is expecting to double its output from 1.4 million sensor clusters to 3.7 million this year for an export turnover of euro 150 million.

Temic’s products are sold to BMW, Daimler Chrysler, Ford, Toyota, Nissan and other major automotive manufacturers.

According to Thomas Sattleberger, member of the executive board of Continental A.G., the remaining portion of the $90 million would be used for further upgrading of equipment and machinery and training of Temic’s workers.

Sattleberger was in the country last week to inaugurate the Continental University facility at the Technological University of the Philippines (TUP) Taguig Campus.

Continental, according to Sattleberger, spent $150,000 to repair and construct a new classroom facility at TUP Taguig which would be used to train Temic employes and scholars who wish to complete their bachelor’s degree in engineering.

Aside from automotive parts, Continental also manufactures tires.

However, its tire manufacturing facility is in Malaysia where Continental recently acquired Sime Darby tire’s operations.

Continental, Sattleberger further disclosed, is negotiating with China to put up another tire manufacturing facility there.

Further expansion plans for the Philippines, Sattleberger said, would depend on the success of the Calamba plant.