Nidec, a global leader in the production of motors used in automobiles, hard disk drives, and consumer and industrial gears, is investing Php40 billion on a new facility that would increase its exports to major markets such as the United States and the European Union.
According to a statement issued by the Department of Trade Industry, the expansion is expected to occur in the third quarter of this year (DTI).
“Trade Secretary Ramon Lopez announced that Nidec will infuse new investments in the amount of P40 billion in an expansion project meant to increase its production capacity for strain wave gears by an additional 50,000 units per month,” the statement read.
Due to high demand in the global market, the extended project focuses on “strain wave gears,” with the goal of increasing output by 50,000 units each month. The vast volume will be disseminated across Brazil, China, India, and Korea, in addition to the US and EU, for a total of 80,000 units per month, and will subsequently be used to generate an electric power system known as the “harmonic system.”
The new facility, which spans more than 35,000 square feet, will supplement the company’s existing 3.5-hectare production space. As a result of the improvement, an extra 400 new jobs were created, essentially boosting Nidec’s total workforce to 1,000 workers.
Nidec, a business that has been operating in the Philippines since 1995 through two facilities (one in Laguna and one in Subic), has expanded its reach to high-tech gears used in the robotics, aircraft, and solar tracking industries. Prior to this change, the Japanese company was primarily focused on the development of spindle motors for hard disk drives.
According to the DTI, its Philippine operations were previously primarily focused on the production of spindle motors and related items. However, it has now broadened its manufacturing operations to include more high-tech gear components used in the aerospace, robotics, and solar tracking industries.
“As the only country in the world producing high precision gear components, [the] DTI, the primordial agency tasked with facilitating the entry of foreign direct investments to the Philippines, will lend support to Nidec’s aspiration to achieve No. 1 status as global specialist in harmonic drive systems,” Lopez said.
“As robotic systems and automation related technology are increasingly defining the configuration and operational systems of factories around the world, [the] DTI is grateful that Nidec has poured resources to training Filipino engineers develop skills related to the production of precision motors and reducers,” he added.