MANILA, Philippines — Japanese firm Nidec Corp. has expanded operations in the Philippines as it started manufacturing a new product line, particularly robot components, in Subic.
In a statement, Subic Bay Metropolitan Authority (SBMA) said Nidec-Shimpo Corp. which is engaged in precision-gearing solutions for robotics and industrial automation, formally launched its operations on Wednesday.
Hitoshi Inoue, first senior vice president at Nidec-Shimpo, said the wholly owned company of Nidec Corp. and sister company of Nidec Subic Philippine Corp., would produce an entirely new product line which has not been manufactured in any part of the world.
He said the plan is to initially build speed reducers for high-precision motion control applications at the rate of 10,000 to 25,000 units per month.
By the end of the year, he said, the target is to increase the output to 100,000 units per month and hike it further to 120,000 units per month by March 2020.
When production hits 120,000 units per month, he said the Subic facility’s output would be higher than the combined capacity of Nidec’s plants in Kyoto and Ueda in Japan.
The Kyoto facility had 30,000 units last year, while the output of the Ueda facility is expected to reach 50,000 units this year.
Inoue said products made in Subic would be exported to Spain, the US and Germany.
He also said the firm plans to hire more personnel at the Subic plant on top of the 100 workers to be employed in the first year of operation.
Japanese Ambassador to the Philippines Koji Haneda said Nidec’s expansion “demonstrates the continuing Japanese investor confidence in the Philippines’ business potential and shows the rigorous effort of Nidec to take advantage of opportunities and take on challenges to break new ground.”
He also cited the company for its skills development activities that make its workers “industry-ready and technology-capable.”
For her part, SBMA chairman Wilma Eisma said Nidec-Shimpo’s operations “will further promote Subic’s stature in high-end manufacturing, improve the proficiency of local workers in technology, and, of course, bolster the local economy by increasing exports.”