DTI: Japanese firms likely to invest P7.4 billion

MANILA, Philippines — The Department of Trade and Industry (DTI) is expecting P7.4 billion in investment leads from two Japanese firms that have expressed their intention to expand operations in the Philippines.

In a media briefing yesterday, Trade Secretary Alfredo Pascual said agency is anticipating additional investments from Japan’s tire manufacturer Yokohama Rubber Co. Ltd. (YRC) and MinebeaMitsumi Inc. following their recent Japan trip.

“They expressed intention to invest additional funds,” Pascual told reporters.

The DTI chief said Japanese firms have been delivering their investment commitments to the Philippines, which they earlier presented to President Marcos during his official trips to Japan.

He said Sojitz Corp. has invested P3.6 billion to the Philippines from their commitment of P2.6 billion. Meanwhile, Murata Manufacturing Co. Ltd. has also invested P7 billion out of its P47 billion commitment, while Taiheiyo Cement Corp. invested P11.7 billion of its P21 billion pledge.

All three large Japanese companies have poured in around P22.3 billion of investments in the country.

On the other hand, Mitsubishi Corp., Sumitomo Corp. and Marubeni Corp. reaffirmed their investment pledges to the Philippines, Pascual said.

The DTI earlier said Yokohama Rubber has expressed interest in expanding production capacity in the Philippines during a high-level meeting with Pascual and other Cabinet secretaries last week.

“Yokohama Rubber’s expansion plans in the Philippines are a testament to the robust economic partnership between our countries and the confidence Japanese investors have in the Philippines,” Pascual earlier said.

The DTI also noted Yokohama Rubber’s contributions to the local economy, particularly through the localization of natural rubber procurement, which has significantly benefited Filipino farmers and rubber processors in Mindanao.

In February, the Clark Development Corp. announced that YRC allocated P3.5 billion to expand its tire plant in Clark.

The investment will boost the daily tire output of YRC subsidiary Yokohama Tire Philippines Inc. (YTPI)’s tire plant to 32,500, adding 1,800 tires per day.

YRC, a major industry player in tire manufacturing, has been operating in the Philippines for decades. The company’s subsidiary, YTPI, is one of the largest facilities in the Clark Freeport Zone, employing Filipinos and producing millions of tires annually.

Meanwhile, MinebeaMitsumi is a Japanese multinational manufacturer of mechanical components and electronic devices.

Last week, Pascual welcomed MinebeaMitsumi’s support in helping the Philippine government train 128,000 semiconductor professionals by 2028. This is part of a trilateral summit among the Philippines, Japan and the US in April, where the three countries committed to strengthen the semiconductor supply chain and workforce development.

The economic ties between the Philippines and Japan remain one of the strongest in the region, DTI said. This, as Japan became the Philippines’ second-largest trading partner and third-largest source of approved investments last year.