German firm Zama Precision Industry Manufacturing Philippines Inc. will build a $16-million facility to expand its operations in the Philippines, according to German-Philippine Chamber of Commerce and Industry (GPCCI).
GPCCI said the world’s largest diaphragm carburetor manufacturer is adding an 11,000-square-meter facility in Sto. Tomas, Batangas. The company recently broke ground for the new factory.
Zama, a member of the German business group, is also a major supplier of chain lubrication solutions and tensioning kits for chainsaws and a technology leader in those fields with operations in Japan, China, Philippines, United States, and the headquarters in Hongkong.
Zama Philippines President and Managing Director Ronald Wienholts said the new facility is expected to generate more jobs.
“Through this new facility we will be able to amplify our efforts in producing Electro mechanicals technologies, wire harness and textile materials, as well as explore other business ventures,” he said.
GPCCI said the $16-million facility will start operations in February 2024.
For his part, GPCCI Executive Director Christopher Zimmer said Zama is a “great example” of how companies from Europe approach the diversification of their business.
“We see a lot of efforts with the China plus-one policy here with the geostrategic way of going forward and we do see a lot of chances here for the Philippine companies to (get) a boost also from other companies in Europe, not only from Germany,” Zimmer told reporters in a chance interview last week.
According to a Bloomberg report published on June 20, 2022, which cited a report by the European Union Chamber of Commerce in China, “Some 23 percent of the businesses that responded to the survey are thinking of moving their current or planned investments away from China.”
The Bloomberg report indicated that Asean and Europe are “among the most considered alternatives.”
GPCCI is the official representation of German firms in the Philippines, a bilateral membership organization with around 300 members, and a service provider to companies in their market entry and expansion.
Image credits: www.zamacorp.com