...the Bataan freeport

HK firm to invest $30M in Bataan freeport (philstar.com) August 17, 2011

 

 

By Punto Central Luzon

 

MARIVELES, Bataan – A Hong Kong firm on Wednesday signed a memorandum of agreement with the Freeport Area of Bataan (FAB) signaling the start of its operation here by the first quarter of 2012 with an initial investment of $30-million.

 

Raymund Tan, president of Luen Thai International, said they will be operating in Bataan their fourth unit in the country under Luen Thai Group Philippines.

 

The publicly-listed company in Hongkong will invest in fabric mill and garment-related factory in the former Bataan Economic Zone turned FAB that will create jobs for 6,000 workers.

 

He said that depending in the global market, he will increase investments in five years.

 

Luen Thai has been in the Philippines for 22 years with a unit producing polo shirts in Pampanga, another unit manufacturing Adidas products in Cebu and another area manufacturing coat with combined manpower of more than 20,000 workers.

 

In Bataan, he is eyeing the production of a well-known polo brand like the one he wore in the MOU signing.

 

When asked why he chose Bataan and not establish in Cebu or Pampanga where he already has been operating for some time, Tan mentioned his strategy of diversifying focus. He said that each of his unit focuses on one particular customer.

 

“The company will not fight for the same workers and management team in the same way that workers will not be competing in one area,” he said.

 

Adidas is one particular customer he meant. He said that to be successful, a firm has to partner with the right customer. “I chose my customer and I do not allow customer to choose me,” he said.

 

“There is a need to manage well, balance the market and to have incomes in yen, euro, dollar and other currencies to counter the weakening of the market because of the depreciation of the United States dollar,” he added.

 

Tan admitted that the poor showing lately of the U.S. dollar is a global problem that affects many countries.

 

“But it opens new opportunity because when the American currency weakens, we will see China coming up and other Asian countries growing fast,” he said.

 

Joel Villanueva, director general of the Technical Education Skills Development Administration, said that TESDA is ready to supply Luen Thai with skilled and competent workers.

 

The former partylist representative even announced that Pres. Benigno Aquino by text has sent congratulatory message to Bataan officials, FAB management while thanking Luen Thai.

 

Rep. Albert Garcia of Bataan’s Second District said that FAB is the most strategic location for investments being nearest to Manila.

 

The Bataan Freeport, the congressman said, offers generous incentives, has ready facilities already existing, has highly-reliable manpower and has deep harbor that will complement the seaport in Subic Bay Metropolitan Authority and airport in Clark, Angeles City.

 

As add-on advantage, the young Garcia said that Bataan will soon have the cheapest power with the operation of GN Power, a Chinese firm, in Mariveles.

 

The Bataan lawmaker is the principal author in the House of Representatives in the creation of the Area of the Freeport Authority in Bataan (AFAB). He is chairman of the House Committee on Trade and Industry.

 

For his part, Gov. Enrique Garcia announced that they will be building a temporary port since AFAB is still preparing a master plan for a permanent port facility.