Toyota invests P5.6B on new Laguna plant

Toyota Motor Corp., the world’s second-largest automaker, broke ground yesterday on a new P5.6-billion facility at its sprawling complex in Santa Rosa, Laguna to boost production and export of manual transmission parts to seven countries.

The expansion is part of a Toyota project to boost sales in fast-growing markets including the Philippines, Thailand, Indonesia, India, Argentina and South Africa.

The new facility, which is expected to be completed by August 2008, will produce R-type transmission units for larger vehicles. It will increase the carmaker’s capacity to produce manual transmission to 333,000 units a year from 150,000 it currently makes.

"This will be only the fourth R-type transmission facility in the world for Toyota," Toyota Motor Corp. senior managing director Akira Okabe said in opening ceremonies attended by President Arroyo.

The other facilities are in Japan, Indonesia and Thailand.

"This R-type transmission is scheduled to be exported to seven countries, not only in Asia, but as far as South Africa and Argentina," said Toyota Autoparts Philippines president Yasuro Takeuchi.

Toyota Autoparts Philippines, a majority-owned unit of Toyota Motors Corp., has invested P5.4 billion in its existing facility in the Philippines since 1990, which has produced 2.4 million G-type transmission parts and 1.4 million constant velocity joints.

"We are currently moving forward to prepare for the employment of over 300 new workers and build the new 14,000 sq. meters production plant and line," Takeuchi explained.

According to Toyota, the increasing global demand for its Innovative Multi-Purpose Vehicle paved the way to introduce R-Type Transmission production line. In 2006, it produced 180,000 G-type transmissions, of which 95 percent were exported to eight countries including Japan, Thailand, Indonesia, Malaysia and South Africa.

"In comparison to G-Type transmission, this R-Type will be installed to Innovative International Multipurpose Vehicle like Hi-Lux which is bigger in engine displacement," Takeuchi said.

Okabe said Toyota’s Philippine production will play a pivotal role in reaching its goal to produce 9.4 million vehicles from the previous year’s nine million.

"We have decided to increase our investment in this crucial hub of our production strategy, and we have decided to increase our commitment to the growth potential of the Philippines," Okabe added.

Other officials present during yesterday morning’s groundbreaking were Trade and Industry Secretary Peter B. Favila, and Toyota officers headed by Toyota Motor Corp. chairman George S.K. Ty.