Two German industrial firms, one on specialized automotive engine parts manufacturing and the other on lubricants production, are expanding in the Philippines with prospects of employing over 2,000 Filipinos.
Brenda Baylon, Business Development Manager of the German-Philippine Chamber of Commerce and Industry, Inc., said that German automotive engine parts investor which she refused to identify, has already also for registration with the Philippine Economic Zone Authority.
“I am not of liberty to divulge the identity because this is still confidential,” Baylon said.
She, however, said that the investment is substantial and the company is the first German firm to invest in a very specialized automotive engine part.
This German firm, she said, is an original equipment manufacturer to every car brand in the world.
“If your product is very specific then the investment is quite big. It is in the billions of pesos and the project can employ 2,000 people easily,” she added.
Baylon cited the very supportive government and the attractive incentive package to investors as major factors that made this German firm to locate in the country. In addition, she cited the prevailing industrial peace and stable political situation in the country compared to other countries in ASEAN.
The other German industrial firm is a lubricants producer, which identity is also being withheld.
“These companies want to announce their investments here,” she said.
Investments from Germany have reached 32.2 million euros in the first quarter alone of fiscal year 2012-2013, already exceeding the 34.9 million euro investments in the whole fiscal year of 2010-2011.
GPCCI was confident that 2014 will usher in more investments inflow based on the number of inquiries the chamber has been receiving lately.
“We are entertaining an average of three inquiries on a daily basis,” Baylon reported.
There are various interests in the energy sector that include the construction of substations, transmission lines, power plants, civil, engineering and designs.
There are also interests in electronics particularly cables and cable accessories and engineering services and supply of pipelines for oil and gas.
Baylon said that German energy companies are looking at the prospects of helping the Philippines address the high cost of power, a major roadblock in attracting foreign investments, through its efficient energy technologies.
German firms are looking into renewable energy sources for introduction into the Philippine market.
In terms of trade, bilateral trade between Germany and the Philippines reached 3.81 billion in 2012 compared with 3.25 billion in 2011.
German imports accounted for 2.29 billion while its exports to the Philippines reached 1.52 billion euros.

Source: Manila Bulletin - January 10, 2014