Mitsubishi Motor Philippines Corp. on Thursday opened the company’s first press stamping facility in Sta. Rosa, Laguna that will produce body panels of vehicles.
Trade Secretary Ramon Lopez, who was the guest speaker during the inauguration of the P2-billion facility, said the 2,000-ton stamping machine would allow Mitsubishi to produce bulky automotive parts such as vehicle body side outer panels, roof panels, floor panels and door panels.
“This is the first time in more than half a century of producing quality automobiles that Mitsubishi will have their own stamping facility,” Lopez said.
“This stamping plant facility will not only enable Mitsubishi PH to produce their own metal stamped parts, but will also help them comply with the CARS [Comprehensive Automotive Resurgence Strategy] program’s requirement that they manufacture at least 50 percent of the vehicle’s assembly weight,” Lopez said.
He said aside from cutting down the delivery lead time of metal stamped parts, the operation of the new stamping shop will also generate hundreds of direct and indirect jobs.
MMPC submitted for review to the inter-agency committee of the Board of Investments P4.27 billion worth of investment projects in anticipation of the release of incentives.
Lopez said MMPC made known its concern and the department and the BoI were willing to immediately review the company’s proposal.
“These IP proposals will be taken up when the CARS IAC meet again, hopefully, not later than Feb. 27,” he said.
The BoI was asked to review for fiscal incentives MMPC investments including the press plant and weld shop amounting to P2.41 billion and investments in outsourced parts worth P1.85 billion.
The parts are from from seven participating parts makers that the company brought in when it applied for the CARS program.
Mitsubishi received an approval to join the CARS program in June 2016, with a total capital expenditure estimated at P4.32 billion, carrying the Mirage Hatchback and Mirage G4 Sedan variants as the enrolled models.
The company’s updated capital expenditure hit P5.74 billion as of September 2017. Outsourced parts accounted accounted for P2.9 billion; in-house parts for P1.99 billion; and in-house assembly for P850 million.
Data showed that of the company total capex, P4.89 billion or 40 percent would be eligible for fixed investment support under the CARS program.