A Japanese Company Is Investing P40 Billion in a New Facility in Subic
A Japanese electric motors manufacturer is investing about P40 billion in an expansion project in Subic. Nidec is a leading producer of motors found in hard disk drives, automobiles, consumer, and industrial equipment. It is scheduled to break ground on a new facility covering 35,000 square feet in the third quarter of 2022 to complement its current 3.5-hectare production space.
The project is meant to increase its production capacity for strain wave gears by an additional 50,000 units per month. A total of 400 new jobs will be added to Nidec’s workforce, which is targeted to reach a total of 1,000.
According to the Department of Trade and Industry (DTI), the added investments will bring the factories’ total combined exports to the US, EU, India, Korea, China, and Brazil to 80,000 units monthly.
Nidec first established a factory in the Philippines in 1995. Its two factories in Laguna and one in Subic are engaged in the manufacture of motors and reducer gears. The company’s operations in the Philippines was previously devoted mainly to the production of spindle motors and related products and has since expanded to cover more high-tech gear products used in the aerospace, robotics, and solar tracking industries.
According to Dita Angara-Mathay, special trade representative and commercial counselor of the Philippine Embassy in Tokyo and lead officer of DTI’s field office in Japan, Nidec initially planned to increase production of components for HDDs. A contraction in the global market for small sized spindle motors led to a shift in corporate strategy. The company has since relocated all its planetary gear business from China to the Philippines.
Meanwhile, its subsidiary and sister company Nidec Shimpo, one of the biggest global innovators for precision gearing solutions, has started mass producing robotic components developed in Japan in the Philippines.
“The country’s newly enacted legislation Corporate Recovery and Tax Incentives for Enterprises (CREATE) seeks to incentivize companies that are global purveyors of manufacturing solutions catering to future industrial requirements,” said DTI Secretary Ramon Lopez. “As the only country in the world producing high precision gear components, DTI, the primordial agency tasked with facilitating the entry of foreign direct investments to the Philippines, will lend support to Nidec’s aspiration to achieve number one status as global specialist in harmonic drive systems.
“As robotic systems and automation related technology are increasingly defining the configuration and operational systems of factories around the world, DTI is grateful that Nidec has poured resources to training Filipino engineers develop skills related to the production of precision motors and reducers,” Lopez added.