German company Zama Group is continuing to expand its production capacity with the construction of an 11,000-square-meter facility in Batangas, which is expected to be operational by February 2024. According to Zama Philippines president Ronald Wienholts, this new facility will allow the company to produce electro-mechanical technologies, wire harnesses, and textile materials, as well as explore other business ventures.
Zama Group is the world’s largest manufacturer of diaphragm carburetors and a major supplier of chain lubrication solutions and tensioning kits for chainsaws. Aside from the Philippines, the company also has production plants in Japan, Hong Kong, China, and the United States.
The German-Philippine Chamber of Commerce and Industry, Inc. (GPCCI) noted that this expansion is part of a “China Plus One Strategy” which allows companies to diversify and explore investment opportunities outside of China. A survey conducted by GPCCI in November 2020 revealed that 53% of German firms in the Philippines reported being in a better situation, while the biggest risk they faced was supply chain disruption. Other challenges they faced included high electricity costs, high raw material prices, and fluctuations in foreign exchange rates.
(Source: Business Inquirer)
