In its application for registration with the Board of Investments (BOI), Formosa Forge said that it would engage in the manufacture of various automotive suspension parts for different types, models and brands of automobile.
Formosa Forge will export at least 70 percent of its production of parts and components.
The company, which is 60 percent Filipino-owned and 40 percent Taiwanese-owned, has two previous registrations with the BOI.
It was initially registered with the BOI in 1995 as a domestic producer of engineered products such as rotating hook blocks for overhead crane, cargo hoisting blocks, heavy duty shackles and hooks and anchor fair leader with a capacity of 3,500 metric tons per year (MPTY).
It filed another registration for expansion with the BOI in 2001 for the same products with an additional capacity of 1,100 MTPY. Its manufacturing operations for such products continue to date.
However, it is applying with the BOI as a new export producer of automotive suspension parts with a capacity of 500 MTPY and plans to begin its new manufacturing activity by October this year.
Formosa Forge has an authorized capital stock of P50 million.
For its new project, Formosa Forge will be financing it through a combination of equity and loans.
With its approved BOI registration, Formosa Forge would be entitled to an income tax holiday (ITH) of four years from Oct. 2004 or actual start of commercial operations, whichever is earlier, but not earlier than the date of registration.
The BOI made it clear that the ITH incentive would be limited only to the revenue generated from the company’s automotive suspension parts manufacturing activity and not to its other previously registered activities.
It would also be entitled to additional deduction from taxable income, tax credits and exempted from wharfage dues, export tax and imposts and fees for a 10-year period from date of registration.