US Firm Expands to the Philippines for HEPA Filter Manufacturing

May 2024

US-based NanoForge Technologies, a subsidiary of the outsourcing firm Wagmi Solutions, is embarking on a strategic move to diversify its manufacturing operations away from China and Mexico. The company plans to establish a new facility in the Philippines, a decision discussed during the US-Japan-Philippines Trilateral Meeting. This initiative involves unit NanoForge Technologies, which specializes in the production of high-efficiency particulate air (HEPA) filters. These filters are crucial for removing a wide range of airborne particles, including dust, pollen, mold, bacteria, and viruses making them essential components for air purification systems.

The new manufacturing facility in the Philippines will cater to the production of these HEPA filters, which will then be exported to Medify Air, a prominent air purifier brand based in the United States. This partnership not only strengthens Wagmi Solutions’ global presence but also contributes to the growing demand for high-quality air purification solutions in international markets.

One notable aspect of this venture is its positive impact on Filipino coconut farmers. The facility will utilize activated carbon sourced from coconut shells, a sustainable and environmentally friendly material. By incorporating locally sourced materials into the manufacturing process, Wagmi Solutions aims to support the coconut industry while creating employment opportunities for Filipinos.

As part of the support framework, incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act will be extended to NanoForge Technologies. These incentives, tailored for export-oriented manufacturers, include an Income Tax Holiday, options for reduced Corporate Income Tax rates, enhanced deductions, and tax- and duty-free importation of capital equipment, raw materials and spare parts. This comprehensive support package underscores the government’s commitment to attracting investments, fostering innovation, and driving economic development in key sectors.

This entry of NanoForge Technologies to the Philippines represents a significant step towards enhancing the Philippines’ manufacturing capabilities in the global market. It also underscores the country’s attractiveness as a strategic location for companies looking to diversify their operations and leverage local resources for sustainable growth.

(Sources: BusinessWorld; Manila Times)

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