MANILA, Philippines - The local unit of Japan’s Mitsubishi Motors Corp. (MMC) is expanding its production operations in the country by investing $20 million to produce new transmission assembly at its transmission manufacturing plant in Laguna.
The firm is still considering additional investments to expand its local assembly of vehicles in the country.
MMC president Osamu Masuko said in a press conference for Mitsubishi Motors Philippines Corp.’s (MMPC) 50th Anniversary yesterday that given the country’s potential and continuous economic growth, the firm has decided to invest $20 million for the production of new transmission assembly by its subsidiary, Asian Transmission Corp. (ATC) at its plant in Laguna by the middle of next year.
“That new transmission is equipped with the newest technology and we are looking to produce 60,000 units annually in ATC then export it to Thailand,†he said.
The new transmission will be fitted to a new vehicle model to be produced in Thailand.
At present, ATC produces transmission and engine parts for vehicles assembled by MMPC. It also manufactures component parts and transmission assembly for Mitsubishi plants in other countries like Japan, Thailand, Taiwan, Malaysia and Indonesia.
Apart from investments for the production of new transmission assembly, Masuko said the firm may pou additional funds to expand MMPC’s existing local vehicle assembly operations.
“I am pleased to announce the plan to enhance and increase production capacity. Initially, we will produce 50,000 units in two years or 100,000 units in five years,†he said,
MMPC’s plant located in Cainta, Rizal currently has a production capacity of 15,000 units per year on one shift.
The company is still studying what new vehicle models could be produced here.
Among those being considered is a box-type commercial vehicle currently under development and the Mirage sedan type passenger car.
In deciding to produce more vehicle models locally, Masuko said the availability of local parts would be important to keep costs down.
“As much as possible, we want to achieve 100 percent local production of parts...we want ratio of local components to increase gradually,†he said.