CDC inks $20-M lease pact with Foton Motors

CLARK FREEPORT, Philippines  – The Clark Development Corp. (CDC) signed recently a $20-million lease agreement with Foton Motors Phils. Inc. for the establishment of an assembly facility, here.

CDC president Felipe Antonio Remollo said he signed the agreement with Foton Motors Phils. Inc. president Rommel L. Sytin, whose company will construct an automotive and truck assembly facility geared for exports generally to the Asian region and for domestic sales “as maybe necessitated by market forces.”

The agreement grants Foton a renewable lease term of 25 years in a 50,000-square meter area along Lot 2 of Panday Pira Ave. here. With a $20-million investment for the next three years, Remollo said Foton will generate employment for at least 120 workers during its initial stage, Remollo said.

He said in the Asian region, Foton was acknowledged as the leading Asian distributor, owing to its aggressive service-driven sales and brand marketing promotions through its network of 14 dealers and 63 accredited service centers nationwide.

In October this year, the CDC and Foton signed a term sheet with United Asia Automotive Group Inc. (UAAGI), which paved the way for Foton’s lease agreement signing with the state-owned corporation.

Foton, through the UUAGI, takes pride in becoming the first Filipino company to compete in the vehicle manufacturing industry by offering its products in the ASEAN market.

One of their vehicles, the Foton MPX Van, was cited it as the “Best Multi-Purpose Van (MPV)” in 2009 by the Car Award Group Inc.

Foton-manufactured vehicles that are distributed in the country include the Blizzard Turbo 4x2 and 4x4 pickup, view ambulance van and the view 15-seater van, and the MPX vans with captain’s seats.

The truck models in the local market are the Hurricane cab and chassis, drop-side and aluminum van, Tornado Series 3.5L, 2.5 and 2, the Cyclone, Wind, and Mini Coach.