MinebeaMitsumi Inc., a Japan-based multinational producer of electronics devices, is investing around P4 billion for its planned expansion in Cebu, according to the Department of Trade and Industry (DTI).
The DTI said MinebeaMitsumi will expand its Philippine facility, which is currently the second largest production base of the company after Thailand, with over 26,000 workers.
The agency said the expansion project in Naga City, Cebu is for the manufacture of optical image stabilizer components for smartphones.
“It (MinebeaMitsumi) is part of an elite roster of foreign direct investors whose cumulative investments in the Philippines amount to over $1 billion,” the DTI said in a statement on Tuesday.
The agency said the expansion project will require “incremental workers approximating 30 percent of the current aggregate HR [human resources] complement in the company’s three factories in Santo Tomas, Batangas, Mariveles, Bataan and Danao City in Cebu.”
As a major Japanese multinational producer of machinery components and electronics devices, the DTI said MinebeaMitsumi’s records include having the “largest global market share” for miniature ball bearings with 60 percent share; pivot assemblies for hard disk drives and one cell lithium-ion battery protection integrated circuits with 80 percent.
For his part, Chairman, President and CEO Yoshihisa Kainuma of MinebeaMitsumi said that “as a manufacturer of ultra-precision components, MinebeaMitsumi strives to construct a system for stable supply by taking advantage of the worldwide manufacturing bases while constructing the safe and secure system for production management.”
“The company contributes to ‘MMI Beyond Zero’ to achieve the reduction of global CO2 emission volume far exceeding its own emissions with products equipped with outstanding environmental performance worldwide.”
MinebeaMitsumi is the maker of the world’s smallest miniature ball bearing (1.5mm), class stepping motors (1.5mm) and cluster tactile switch (4.0mm). In addition, the Japan-based firm produces the thinnest guide plate for LED and backlight for LCD (0.3 mm).
The company’s global operations span 96 research and development centers and factories in 22 countries. These facilities are backed by a labor force of close to 86,000.
The DTI noted that MinebeaMitsumi reported net sales of [Japanese Yen] JPY 1.12 billion last March. The agency said the company wants to increase sales to JPY 2.5 trillion by 2029.
The Trade department also noted that the CEO of MinebeaMitsumi plans to raise areas of support from the Philippine government to reduce its carbon footprint.
“MinebeaMitsumi will be building a solar generation facility with electric generating capacity of 12.82 [gigawatt hours] GWh per year for its own use to meet its carbon neutrality goals as well as address the recent rising cost of energy,” the agency said.
With the backing of the Philippine government, the DTI said the country can potentially become MinebeaMitsumi’s largest production base in the world especially with the planned expansion in Cebu.