German firm gains toehold in the Philippines
Rehau, a leading German manufacturer of polymer products, has set up a representative office in the Philippines as it looks to further boost sales in the country by tenfold over the next 10 years.
This bullish outlook is anchored on the Philippines’ bright prospects as well as the growing demand for Rehau products in the country, particularly from local manufacturing and construction companies.
“Rehau is optimistic about the economic prospects of the country in the long term. The boom in the construction and real estate [sectors] is promising. We are confident that our quality products will be accepted by the local market because we adhere to safety standards around the world, and global standards that meet reliability and value for money,” said Christopher delos Reyes, head of Rehau’s representative office in the Philippines.
For the past 20 years, Rehau products have been distributed in the country. But this is the first time that a representative office will be put up. At present, the company’s operations in the Philippines is estimated at around 1.5 million euros, or a little over 90 million pesos. The company expects to grow its Philippine business to at least 5 million euros, or about P306 million, in the next three years.
Vijay Jain, chief executive officer of Rehau Pte. Ltd., said it was important for the company to set up a local team in the Philippines, which could account for 20 percent of the company’s total sales in Southeast Asia in the next ten years. At present, the country’s share in sales was just about 5 percent, Jain told reporters Thursday night.
“We think it’s time for us to set up local operations, not just to concentrate on Manila, but to also get into other markets like Cebu and Davao,” Jain explained. “This is a long term commitment on our part because, once we go in, we don’t leave a country.”
The company will focus on the manufacturing, furniture and construction sectors, Jain said.
The company in other parts of the world also serves the automotive market, but it will not do so in the Philippines because Rehau follows certain strategy globally, he added. Rehau will serve only certain car companies, such as those that manufacture Mercedes, BMW and Audi, among others. Amy R. Remo
