Japanese firm expanding manufacturing plant in Mindanao

DIGOS CITY—Amid prevailing concerns over the business environment in Mindanao, a Japanese firm is set to nearly double its manpower this year as it expands with a new assembly line on its 19-hectare manufacturing plant here.

Nakayama Technology Corp.—manufacturer and exporter of insulated brick tile, granite wall panels and kitchen systems—is looking to hire between 800 and 1,300 more employees this year to augment its 1,300 workforce, said Akihiro Ushimaru, the firm’s vice president and president of the Japan Chamber of Commerce in Mindanao.

Speaking to reporters during a press tour at the firm’s sprawling plant, Ushimaru said the firm would begin recruitment of the first batch of some 400 new workers this summer.

“In the second factory, it will be eight bays, so we are expecting to hire 800 to 1,300 employees. The first batch of 400 we’re going to hire in or before June,” said Ushimaru.

He said the firm decided to locate in the Philippines to source local clay and to tap the country’s labor force. Apart from a manufacturing plant, Nakayama also operates an information technology division in its plant here, with local workers doing one-hour home designs for prospective Japanese clients.

“Filipino workers are very hardworking. Since they understand English, it’s easy to train, it’s easy to transfer our technology,” said Ushimaru.

He called on the government to work further on making Mindanao more attractive to foreign investors, primarily through improving infrastructure and offering more tax incentives to businessmen.

“Mindanao is facing a power shortage,” he said, adding that Mindanao needed better infrastructure support, including roads and power plants.

He anticipated an influx of locators to Mindanao when the peace process continued to gain ground. The government and the Moro Islamic Liberation Front are continuing negotiations following last year’s signing of a landmark Framework Agreement for the creation of a Bangsamoro juridical entity.

“If peace process continues to have success, if many more Japanese investors come, infrastructure will no longer be enough. Infrastructure should be prepared so that this place will be very attractive for foreign investments,” he said.

Still, he says, it’s “good to invest” in Mindanao despite its limitations.