At least 30 South Korean companies are set to establish and operate an assembly plant for farm machinery in Batangas to help local producers modernize their farms.
Agriculture Secretary Emmanuel Piñol said on his Facebook page that he had signed a memorandum of agreement with the Korean Agricultural Machinery Industry Cooperative (Kamico) regarding the proposal.
Kamico plans to put up a research and development center and a training center for farmers and equipment operators, which will be complemented by a 50-hectare demonstration farm where farmers can test the locally assembled machinery.
Kamico President Shin-gil Kim said the assembly plant would be located in Malvar, Batangas, although Piñol said this had yet to be finalized.
Piñol quoted Kim as saying that the 30 companies decided to establish manufacturing facilities in the Philippines “in view of the aggressive mechanization program of the government.”
The secretary added that the number of South Korean companies planning to invest in the country might reach 50 before the end of 2020.
Meanwhile, the plant is expected to be operational before the end of 2019.
Kamico participated in a farm equipment and machinery convention in Cebu earlier this year, wherein it was able to connect with the agriculture agency.