Yokohama to go big in Phl

Spy Bits sources informed us that Yokohama Tires Philippines (a wholly owned subsidiary of the Yokohama Rubber Co. in Japan) is all set for a major expansion with an additional $650 million allocation for its current facility in Clark. This will increase Yokohama Philippines’ current production of seven million tires a year to 10 million annually by 2013 as the first phase, with the annual capacity projected to reach 17 million by 2017 when the second phase is completed. Spy Bits assumes the additional rubber requirements will be supplied by Malaysia, where Yokohama acquired a 26-percent stake in Malaysian tire company IT International sometime in 1984. 

This development will certainly be good for the country because it will mean additional direct jobs placed at 5,000 when the expansion is completed and the new facilities become fully operational. The plan is also seen as an aggressive move by Yokohama to outdo its competitors (among them Bridgestone) and position itself as the biggest tire manufacturing firm in the world. We were told that in the Philippines, more and more car and jeepney owners are going for Yokohama due to the perception that the tires are more suited to the hot weather in the country and less susceptible to problems associated with Western brands that are developed for cooler climates. Interestingly, the company has also launched a “green policy” where everything, from manufacturing processes to business practices and product performance, would take into account environment-friendly practices. 

Hong Kong pollution at worst levels 

People who try to escape from the bad air quality in Metro Manila and go to Hong Kong are actually worse off. People in Hong Kong are literally choking to death due to high pollution levels. Latest research from the Hong Kong University School of Public Health and HK-based think-tank Civic Exchange revealed an estimated 3,200 avoidable deaths a year attributed to air pollution – three times higher than initial estimates of 1,000 air-pollution related deaths a year. 

Definitely, the economic losses are staggering, with estimates reaching more than $5 billion annually. As a matter of fact, illnesses and lost days of productivity in December 2011 alone reportedly cost Hong Kong’s economy some $60 million. Outrage has prompted government to take hourly readings at roadside stations, with vehicle emissions as well as industrial pollution from the neighboring Pearl River Delta blamed as the biggest culprits as pollution levels read above 100 about 20 percent of the time.

 Hong Kong is one of the richest cities in the world with a cash pile of about $80 billion and 10 percent of the residents probably millionaires. However, the worsening air quality – now at intolerable levels, has prompted investors and key players in the financial community to transfer to Singapore due to serious health concerns. 

There is now growing demand for government to take out dirty trucks and buses off the streets to improve the air quality in a “dramatic” way. Just recently, the Hong Kong Environmental Protection Department announced that it was modifying its pollution monitoring efforts to comply with global standards – a move that was greeted with more criticism. Hong Kong expats want immediate clean air, not simply monitoring. Given this development, the Philippines should take advantage of this and start the serious implementation of the Clean Air Act to lower air pollution levels in Metro Manila. Many regional firms are starting to look for better places in Asia to relocate their expats. 

MVP is a ‘gold digger’ 

Manny Pangilinan is keenly eyeing Lepanto Consolidated Mining – one of the biggest gold producers in the Philippines with high-grade deposits in Mankayan in Benguet. MVP seems bent to be a “gold digger” considering his earlier foray into the mining industry with Philex Mining Corp. – which is actually not surprising given the positive outlook for gold in 2012. According to analysts, gold prices are seen to reach $2,000 an ounce this year, prompted by significant demand for gold both in coin, bar and jewelry form not only in Europe, North America but also in Asia. 

Lepanto has an estimated gold production of over 150,000 ounces and its Far South East (FSE) gold project is considered to be very highly prospective, made even more attractive by the fact that it is located within the current camp in Benguet and near two other mines historically operated by Lepanto. This certainly augurs well not only for the mining industry in general but the Philippine economy. After all, the country sits on one of the biggest copper and gold reserves in the world. In 2010, the Philippines also accounted for some 10 percent of the total production of nickel in the world. 

Mike Toledo will ‘tango’ on

Former Erap spokesman Mike Toledo is leaving his post as president and CEO of the Manila office of Weber Shandwick, a global public relations and communications firm under the New York Interpublic Group. Mike, who obtained his law degree from the University of the Philippines and his Master of Laws degree from the London School of Economics, was instrumental in growing the Manila office of Weber Shandwick whose expertise involves consumer brand and reputation building, as well as public affairs and crisis management.

 It would seem that Weber executives in New York and Washington have already taken a liking for Mike, but apparently Manny Pangilinan himself has taken a greater liking for him. Mike could not resist the offer and will be moving on to Philex, one of MVP’s companies. We were informed that Weber Shandwick will be appointing a regional executive to replace Mike Toledo. Chances are the new guy will not be based in Manila.

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