Motorcycle maker KYMCO to build P1-B facility to expand capacity

Taiwanese motorcycle manufacturer KYMCO is planning to build a P1-billion production plant in the country to meet the growing demand for the two-wheeled vehicle.

In a press briefing in Makati City on Wednesday, KYMCO Philippines president Allan Santiago said the new facility will be constructed in 2020 and targeted to be operational by 2023.

Santiago said the new plant will have a capacity of 6,000 units per month. He said the company is still scouting for a location of the new plant somewhere in the north or south of Luzon.

The planned P1-billion facility will replace its existing production line located at the Sta. Maria Industrial Estate in Bagumbayan, Taguig City which has a capacity of 5,000 units per month.

The need for KYMCO to expand capacity stems from the Filipino mid-segment's increasing purchasing power and the need to have alternative modes of transport due to the worsening traffic situation, according to Santiago.

"The motorcycle market is growing 10-15 percent annually ," he said.

Once the new facility is operational, the existing Taguig production line will cease operations as this will add more costs for the company.

"Five years from now, we expect that motorcycles will be electric thus we need a new facility for that," Santiago said.

KYMCO will also put in P679 million or $13 million worth of investments this year to support its current operations in the country.

"After about a decade of operations in the country, we have seen the potential and economic opportunities that the Philippines has to offer and we believe that it is high time for us to take our presence and commitment to the next level," Santiago said.

"We are exerting more effort with our plan to bolster our investment in both the Philippine market and Filipino labor," he added.