Japan firm invests P2 billion for auto parts

MANILA, Philippines — Kurabe Industrial Philippines Inc., a Japanese manufacturing company, is investing P2 billion into the country to set up a manufacturing facility in Lima Estate in Batangas, an economic zone operated by Aboitiz InfraCapital (AIC).

AIC, the infrastructure arm of the Aboitiz Group, signed the deal with Kurabe Industrial which translates to a P2 billion investment to be spent for land, acquisition of factory equipment, and the eventual construction of the facility which is slated to break ground in 2024.

Kurabe will purchase a 5.9-hectare property within the 800-hectare Lima Estate. Upon completion, Kurabe’s factory is expected to recruit a 2,000-head workforce from Batangas and adjacent areas.

The facility will manufacture and assemble primarily Kurabe’s automotive products, such as car seat heaters and wiring, and steering wheel heaters and wiring.

AIC and the Philippine Economic Zone Authority (PEZA) signed the deal with Kurabe in Tokyo, Japan in November during the Philippine business  delegation’s Japan Roadshow.

It follows the registration agreement between PEZA and Kurabe, which classified the Japanese company as an ecozone export enterprise.

Kanazawa Takenobu, Kurabe Co. Ltd.’s CEO and president, said the strategic location of Lima Estate in Batangas as well as the incentives from PEZA were major considerations for the company.

“Aboitiz InfraCapital is undoubtedly our choice partner for this expansion, given its well-established reputation and its strong relationship with Japanese business owners. Knowing that a dedicated Japanese team from AIC is accessible to meet our needs provides us with a sense of security and comfort,” he said.

“On behalf of the Philippine delegation at the Japan Business Roadshow, we welcome Kurabe Industrial to the Philippines, and to Lima Estate.  This partnership demonstrates our shared commitment to attracting foreign investment to the Philippines—which aims to generate employment, boost commerce and local trade and reinforce the economy,” said AIC Economic Estates head Rafael Fernandez de Mesa.

At present, Lima Estate is home to over 70 Japanese companies.

To accommodate growing demand from investors, AIC broke ground earlier this year on a 57-hectare expansion within Lima Estate which is part of a larger 150-hectare expansion.