Toyota annexes Aichi Forging

Toyota Motor Philippines Corp. (TMPC) signed yesterday a supplemental agreement annexing Aichi Forging Company of Asia Inc. (AFC) to the Toyota Special Economic Zone in Sta. Rosa, Laguna.

AFC is the largest forging company in Southeast Asia. It produces forgings for transmission gears and shafts for Toyota Autoparts Philippines, Asian Transmission gears and shafts for Toyota Autoparts Philippines, Asian transmission Corp., Isuzu Autoparts Manufacturing Corp., Laguna Autoparts Manufacturing and Daiwa Seiko Philippines.

Previous to its annexation to the Toyota SEZ, AFC could only sell to local automotive firms.

With its annexation, AFC can now directly sell to other automotive manufacturers abroad as it would now be recognized as ecozone export enterprises.

As locators within the Toyota SEZ, AFC would be able to expand its capability to produce Toyota’s metal forging requirements for propeller and axle units in Thailand and Indonesia.

The ability to exports would increase AFC’s revenues to $26 million by 2006 and generate more employment and technology transfer to highly-skilled Filipinos.

AFC has already invested P147 million to increase its production capacity.

For this year and 2005, AFC plans to invest another P208 million and P50 million, respectively, to double its production capacity of forged metal products.

AFC is the latest autoparts maker to locate within the 82-hectare Toyota SEZ.

The Toyota ecozone is now home to a number of investors performing a strategic role in the manufacture and export of automobile products to ASEAN, Japan and other parts of the world.

In 2003, exports of companies located inside the Toyota SEZ totaled $126 million and is expected to increase to $163 million by 2006.

The annexation agreement was signed by TMPC president Nobuharu Tabata and Philippine Economic Zone Authority (PEZA) Director-General Lilia de Lima.

AFC was represented by its president Masaki Mori.