Defense chief Teodoro: Eyed ammunition production to increase PH trade flows

Defense Secretary Gilberto Teodoro Jr. said Tuesday that the planned production of ammunition in the Philippines would elevate the country's trade flows.

Earlier, it was reported that US lawmakers were exploring the possibility of establishing a joint ammunition manufacturing facility in Subic Bay.

At a Kapihan with the Media in Washington D.C., Teodoro said the matter would be a ''foreign direct investment concept."

He said this would bring jobs to the country, especially for highly technical individuals. 

''We can envision a private entity going about it on a commercial basis, so that they can hire people on a commercial basis. Depending on the scale, initially about 200 to 300 people, highly technical people,'' Teodoro said. 

''But then, there are downstream industries. Of course, they will have to build access to port facilities. It will regenerate revenue on a commercial basis for Subic,'' he added. 

He stressed that this would ''increase our trade flows.'' 

''So, that is an example of US government-sponsored foreign direct investment to help our people and our self-reliance, too,'' Teodoro said. 

Further, the Philippine defense chief also stressed that this would cater to commonality of production of munitions, ''which is at a worldwide shortage at this time, of all calibers, whether direct fire or indirect fire.''

Still, the Philippines will review the proposal, Teodoro guaranteed. 

In its report dated June 16, the US House Committee on Appropriations directed the US Department of Defense to assess the feasibility of establishing a joint ammunition manufacturing and storage facility in the said area.

The facility will enable the forward staging of ammunition stockpiles and related materials such as nitrocellulose, nitroglycerin, and acid. — RSJ, GMA Integrated News