Epson applies for PEZA incentives

MANILA, Philippines - Epson Precision (Philippines) Inc. (EPPI) is seeking incentives from the Philippine Economic Zone Authority (PEZA) for its new project plant site at the LiMA Technology Center in Batangas.

PEZA said in a notice that EPPI has filed an application for pioneer status to be granted to its manufacture of liquid crystal projector, sub-assemblies and parts at its plant at the LiMA Technology Center.

If approved, EPPI “will be entitled the to six years of income tax holiday.”

“Said application has been officially accepted and is under process in this office,” the agency said further.

EPPI has two factories at the LiMA Technology Center, which is a proclaimed special economic zone.

Factory 2 which occupies approximately 38,000 square meters, started operations last year.

It is expected to increase the firm’s projector production capacity to about one million units per year by the end of fiscal year 2012.

The new factory is likewise seen to double the firm’s annual inkjet printer production capacity to about six million units this year.

By the end of fiscal year 2012, the expansion is expected to result in an increase in the firm’s workforce headcount to 8,000 from 6,000.

Total investment for the expansion is approximately $110 million.

Apart from the two facilities in Batangas, EPPI also has production operations in Laguna.

EPPI decided to expand its existing facilities given an expected growth in the projector market due to expanding applications in business as well as demand from emerging markets.

The firm also anticipates a growth in demand for inkjet printers particularly from enterprises.

Earlier, Epson Philippines country manager Toshimitsu Tanaka said the firm is optimistic its sales would rise as it starts to offer more affordable printers that will cater to home users and to those in offices.

As the firm has seen double-digit growth for both the projector and printer business in the last three years, he said the company is aiming to achieve double sales turnover within five years.