Hong Kong-based apparel maker to invest P30 million in Phl

MARIVELES, Bataan, Philippines — Hong Kong-based Luen Thai International Group Limited announced yesterday it will invest up to P30 million for an apparel manufacturing facility here, its fourth plant in the Philippines, which will employ 4,000 to 6,000 people.

Likewise, Luen Thai International Group Limited president Raymond Tan announced his strong faith in the economic fundamentals of the country by saying that they expect their Philippine operations to grow by 30 percent in the next three to five years even if the Save the Industries Act is not passed by the US Congress. The Save Act is expected to save the ailing local garments industry by allowing duty-free re-exportation of Philippine made garments to the US.

The Memorandum of Understanding (MOU) for the multi-million dollar investment was signed by Tan and Authority of the Freeport Area of Bataan (AFAB) chairman and administrator Deogracias GP Custodio. Yesterday’s signing was witnessed by Second District of Bataan Representative Albert S. Garcia, Bataan Governor Enrique T. Garcia, TESDA Director General Joel J. Villanueva and Luen Thai’s Frank Sauceda.

Tan said the company’s Bataan facility will be producing garments for Uniqlo. The facility will be operational by the first half of 2012. He said more brands may come in but it really depends on the global environment.

Tan said that the Philippines is the only non-China strategy of his $1.6 billion Luen Thai empire. This is in spite of the higher minimum wage rate of the Philippines when compared to Cambodia, Bangladesh, Indonesia and Vietnam.

Tan explained that he likes the Philippines because the Filipinos are “committed, honest and hardworking” people. As evidenced of the Filipinos’ commitment, Tan said that the attrition rate per month of the Philippines is only .5 percent. This is very small compared to the 60 percent attrition rate of China.

Tan conceded that with the economic turmoil that was compounded by the recent ratings downgrade of the US, he is not sure if this is the best time to announce a new investment. But he said his conclusion is, this is the best time to invest and show his commitment to the Philippines.

When asked how his export business was affected by the weakening of the dollar against almost all currencies, Tan said this challenging time has brought in new opportunities.