German firm invests P2.5B in PH manufacturing plant


Germany's Zama Precision Industry Manufacturing Inc eyes to inaugurate its plant in Batangas by January 2016

MANILA, Philippines – Zama Precision Industry Manufacturing Inc, a power tool manufacturer, is investing P2.5 billion ($54.24 million) for its manufacturing facility – one of the biggest investments of a German company in the Philippines.

Zama managing director Dr Karsten Wagner said construction of the facility at the First Philippine Industrial Park (FPIP) in Sto Tomas, Batangas is in full swing in time for its inauguration in January 2016.

“We're well within our target and we expect that our plant will be up and running in the first quarter of 2016,” Wagner said.

Zama, a subsidiary of STIHL, manufactures chainsaws and other handheld power equipment like trimmers and blowers. It is regarded as the world’s largest manufacturer of diaphragm carburetors and has plants in Japan, Hong Kong, China, and the US.

Zama Holdings has 2,400 employees worldwide and produces more than 14 million carburetors in about 350 different models.

In September 2014, Zama broke ground for its 60,000-square meter facility in the country. The constructed area of 22,500 square meters will house the administration offices, main production area, die-casting area, warehouse and utility areas, among others.

The Philippine Zama facility is not only expected to stimulate business activities, but also generate thousands of jobs. A wide array of parts and components will be sourced at local suppliers in the CALABARZON (Cavite, Laguna, Batangas, Rizal, Quezon) area.

“The Philippines is an attractive industrial location. It is one of the fastest growing economies in the Asia-Pacific region; it is politically stable compared to other countries in the region and has a well-structured educational system with English as an official language,” said Dr Bertram Kandziora, STIHL executive board chairman, who was in the country last year during the groundbreaking ceremonies.

The Philippine site will expand the manufacturing network of Hong Kong-based Zama Corporation. The Batangas plant will also produce a wide array of Zama products, including its trademark carburetors for small fuel engines.

Source: October 19, 2015