10 Taiwanese bicycle makers to invest in RP

At least 10 Taiwanese bicycle makers are set to invest anywhere from $15 million to $30 million in Subic.

According to sources privy to the investment, the Taiwanese bicycle makers are eyeing a 20-hectare site in Subic where they plan to manufacture bicycles, bicycle parts and Shimano transmissions.

The 10 Taiwanese bicycle manufacturers would form a cluster group that would support each other’s operations.

The cluster approach is part of the thrust of Subic to attract Taiwanese investors to locate in the former US naval facility.

Romulo V. Manlapig, deputy resident representative to Taiwan, confirmed that the Taiwanese bicycle manufacturers are just among the numerous investors the government is talking to.

According to Manlapig, "these (bicycle makers) are one of the clusters we are talking to."

Talks between Philippine Government authorities and the Taiwanese investors, Manlapig disclosed, have been going on for the past four to five months.

Manlapig pointed out that bicycle manufacturing is very labor intensive.

"The metal working industry has a very strong support industry, that is why we are very keen to get them in," Manlapig said.

However, Manlapig expressed hope that "when the whole cluster is here already, it would be 100% local content unlike in auto where some parts are still being imported."

Manlapig is also optimistic that more Taiwanese investors will invest in the country once the Subic-Clark and Kaohsiung economic corridor is operationalized.

"The corridor arrangement is propelling the movement of certain industrial clusters into Subic and Clark," Manlapig said.

"Within the next two quarters we will witness the accelerated movement of investments into the country from Taiwan and vice versa," he added.

Trade officials led by Senior Undersecretary Thomas Aquino and officials of the Manila Economic and Cultural Office (MECO) are scheduled to go to Subic on Friday to discuss policy issues concerning the economic corridor.