The Department of Trade and Industry (DTI) said that a Japanese electric motors company will invest P40 billion in the Philippines to expand its production line, boosting exports to markets such as the United States and the European Union.
DTI announced on Thursday that Nidec, a leading manufacturer of motors used in hard disk drives, vehicles, consumer and industrial devices, would break ground on a new site probably in the third quarter of this year.
“Trade Secretary Ramon Lopez announced that Nidec will infuse new investments in the amount of P40 billion in an expansion project meant to increase its production capacity for strain wave gears by an additional 50,000 units per month,” the statement added.
System of harmony
Nidec, according to the DTI, is benefiting from rising market demand for harmonic systems, which are a type of electric power system. The additional investments will increase the plants’ total monthly shipments to 80,000 units to the United States, European Union, India, Korea, China, and Brazil.
The new building will span over 35,000 square feet and will complement the company’s current 3.5-hectare manufacturing footprint. Nidec will add 400 new roles to its personnel, raising the total to 1,000.
In 1995, Nidec opened its first manufacturing in the Philippines. According to the DTI, it now has two factories, one in Laguna and the other in Subic, that manufacture motors and reducer gears.
According to the DTI, its Philippine operations were previously primarily focused on the production of spindle motors and related items. However, it has now expanded its manufacturing operations to include high-tech gear goods for the aerospace, robotics, and solar tracking industries.
“As the only country in the world producing high precision gear components, [the] DTI, the primordial agency tasked with facilitating the entry of foreign direct investments to the Philippines, will lend support to Nidec’s aspiration to achieve No. 1 status as global specialist in harmonic drive systems,” Lopez said.
“As robotic systems and automation related technology are increasingly defining the configuration and operational systems of factories around the world, [the] DTI is grateful that Nidec has poured resources to training Filipino engineers develop skills related to the production of precision motors and reducers,” he added.