A Japanese electric motor maker will invest 40 billion pesos to expand its production line in the Philippines, the Department of Trade and Industry (DTI) has announced, helping boost exports to markets such as the United States and the European Union.
Nidec, a leading producer of motors in hard drives, automobiles, consumer and industrial equipment, would begin construction of a new facility during the third quarter of this year, DTI said in a statement on Thursday. .
“Commerce Secretary Ramon Lopez announced that Nidec will inject new investment of 40 billion pesos into an expansion project to increase its stress wave gear production capacity by 50,000 units. additional per month,” the statement said.
According to the DTI, Nidec is taking advantage of the growing market demand for a harmonic system, a kind of electrical power system. The additional investments will bring the factories’ combined total monthly exports to the United States, European Union, India, Korea, China and Brazil to 80,000 units.
The new facility will cover an area of over 35,000 square feet, complementing the company’s current 3.5 hectare production space. Four hundred new jobs will be added to Nidec’s workforce, bringing the total to 1,000.
Nidec first established a factory in the Philippines in 1995. It now has two factories, one in Laguna and the other in Subic, which manufacture motors and gearboxes, according to the DTI.
Its operations in the Philippines were previously mainly devoted to the production of spindle motors and related products, the DTI said. But it has since expanded its manufacturing operations to cover more high-tech gear products used in the aerospace, robotics and solar tracking industries.
“As the only country in the world producing high-precision gear components, [the] DTI, the paramount agency tasked with facilitating the entry of foreign direct investment into the Philippines, will lend its support to Nidec’s aspiration to achieve global No. 1 status as a global specialist in harmonic drive systems.” , Lopez said.
“As robotic systems and automation-related technologies increasingly define the layout and operational systems of factories around the world, [the] DTI is grateful that Nidec has invested resources to train Filipino engineers to develop skills related to the production of precision motors and gearboxes,” he added.
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