A Japanese steel company will bring the latest technology to the Philippines to produce gear parts for industrial robots and specialty steel products for the domestic and foreign markets.
Taiyo Subic Philippines Corp., a subsidiary of integrated special steel trading firm Taiyo Shoji Co. Ltd., leased a 6,200-square-meter facility at the Subic Techno Park in Subic Bay Freeport Zone.
Subic Bay Metropolitan Authority chairman and administrator Wilma Eisma said Taiyo Subic initially sub-leased a property with Nidec Subic Philippine Corp., another Japanese company which manufactures spindle motors for hard disk drives.
“But Taiyo Subic has committed to construct its own factory here within this year at the cost of P142.5 million. This only goes to show the continuing confidence among Japanese investor-companies in Subic,” she said. She said the initial investments of Taiyo Subic could reach P392.5 million.
The new company established its presence in Subic to import and export special steel materials and manufacture parts for use in the automobile industry, industrial and plant machinery and information technology.
Taiyo Subic will import materials from Taiyo Japan and Daido Steel Co. which are considered among the world’s largest specialty steel manufacturers.
It will refine the metal and supply precision materials and gear parts to companies here and abroad.
Taiyo Subic plans to supply Nidec Subic with 100,000 units of speed reducers per month by March 2020.
Eisma said the entry of another Japanese manufacturer heralded the resurgence of Japanese investments in Subic Bay.
Nidec Shimpo, a sister company of Nidec Subic, launched in January an entirely new product line for super-silent speed reducers that are not manufactured elsewhere in the world.
This was followed in March by the opening of a research and product development facility by Sanyo Denki Philippines Inc. also at Subic Techno Park.
Japanese Ambassador to the Philippines Koji Haneda, who graced the Nidec Shimpo inauguration, said the new projects showed “the continuing Japanese investor confidence in the Philippines’ business potential.”