PEZA firms take up production slack in Japan

MANILA, Philippines - There has been an increase in the production of exporters in Philippine Economic Zone Authority (PEZA) areas despite fears the twin disasters in Japan will result in a slowdown of exports, a top investment official said.

PEZA Director General Lillia B. de Lima said as of April 4, a number of firms have notably increased their production although some experienced delays in the supply of materials coming from affected areas in Japan.

In fact, auto parts manufacturers have ramped up their exports to compensate for the slack in their mother companies’ operations in Japan.

De Lima stressed that some locators are even confident that the situation will not get worse. She noted that one firm even posted its highest production last month. JAE Phils., a manufacturer of electronic connectors, registered its highest volume production in March.

“The effect of the disaster in Japan has minimal impact on PEZA companies and to Japanese companies in particular. Delayed arrival of raw materials is being experienced but they are optimistic that the situation will soon normalize and won’t get worse,” De Lima said.

For instance, De Lima said NEC Toppan Circuit Solutions Phils., a maker of special high-tech printed wiring board for flip chip ball grid arrays, increased subcontracting activities from Japan with more working days to seven from five.

Also, Showa Polymer Process Corp., a Japanese manufacturer of hatch sponge packing, sphere-type flexible joints, condenser packing and C D mounts, is seeking more local suppliers of raw materials.

Tosoh Polyvin Corp., a maker of PVC compounds, is now producing at maximum capacity in that country due to increased orders from Japan since production in that country went down due to lack of electricity.

De Lima reported that there is an increase in the number of inquiries on available vacant lots and buildings for rent/sale in the First Cavite Industrial Estate Special Economic Zone, Daiichi Industrial Park Specialist Economic Zone and the EMI Special Economic Zone. She likewise said that for these zones, the companies exporting to Japan experienced temporary disruption because airports and seaports closed but the situation has already normalized and there is no more problem in the supply chain.

At the Laguna Technopark Special Economic Zone, majority of the companies were not affected since they source raw materials outside of Japan or from areas in Japan not affected by the disaster.