The Board of Investments (BOI) said it has recently approved the application of Maxiflex Philippines Corp. as a new export producer of mattresses under the 2022 Strategic Investment Priority Plan (SIPP) of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.
“The homegrown company, Uratex, (a member of the RGC Group of Companies), will invest P560.4 million in a manufacturing plant located in Plaridel,Bulacan, with an annual production capacity of up to 680,000 pieces of all-foam and spring mattresses,” the agency said in a statement on Thursday.
The BOI said Uratex is slated to start commercial operations next month. The attached agency of the Department of Trade and Industry also noted that the company is aiming to export around 79 percent of its production to the United States, New Zealand, Papua New Guinea, and other Asean countries.
At full capacity, the firm’s export sales will reach over P2.1 billion annually, according to the agency.
“(The project) will provide a boost to the international footprint of our locally-produced mattresses since a great majority of Uratex’s production will cater to foreign markets, leveling up our exports of high-value and high-quality products,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said.
“The exports of its Maxiflex product around the globe will provide greater traction and awareness for Uratex as a world-class brand.”
The new plant, BOI said, will be capable of combining different foam and spring materials to create innovative products that will give each customer “a very comfortable sleep.”
Further, the agency said, the facility will house equipment such as bedding and mattress testing machines which can conduct various performance and durability tests to ensure that mattresses not only fulfill the “intended purposes” for which they were designed but also to meet global industry standards.
In relation to shipping efficiency and distribution of mattresses, the BOI said Uratex will employ a volume reduction packing method, which entails the use of equipment that have the capability to and roll pack foam and spring mattresses.
According to the BOI, this is considered a technological breakthrough in the global mattress industry, which will allow the company to deliver the mattresses to all the islands in the archipelago at a lower cost.
The agency said the Uratex brand has been able to hold its own in the Philippines and has maintained its dominance despite the entry of global brands like Tempur, Serta, Ikea, and Emma. Aside from Uratex, the Philippines has Salem, Philibed, and Mandaue Foam as manufacturers carving their niches in the competitiveness mattress market.
Data from the Statista website shows that the domestic mattress market is expected to reach $41 million or over P2 billion in 2022. It is projected to grow yearly 9.45 percent in the next four years with the market reaching nearly $60 million by 2026.
As of 2021, Philippine exports of mattresses reached $102 million while imports reached $36 million resulting in a trade surplus of around $66 million, according to data from Tradeline Philippines which was cited by the BOI.
Meanwhile, the top export markets for mattresses are the Netherlands with $58 million, followed by the United States with $35.4 million, and Japan with $8.1 million.