Sumitomo Japan opens local firm in the Philippines
Posted on March 10th, 2009
The effect of the global economic recession in the Philippines cannot be denied as hundreds of overseas Filipino workers (OFWs) were sent home late last year ahead of their contract because of tight financial situations by their employers. This was aggravated by multinational companies in the country who have either closed shops or downsized early this year, leaving more Filipinos without a job.
But all is not really lost, because while companies have closed down, there are still others who believe in the viability of investing in the Philippines and are keen on opening shop in the country.
One such company is the Sumitomo Corporation of Japan who has already established their local unit, the Sumitomo Corporation of the Philippines. They will be engaging in the manufacture of electronics and semiconductors in the country.
Sumitomo Corp. of the Philippines have an authorized capital stock of P518 million, 35 percent of the authorized capital has been subscribed and paid by Sumitomo Corp. Asia Pte. Ltd.
Aside from manufacturing, the local unit of Sumitomo will also import, assemble and develop products, including raw material, semi-finished products for assembly and sale to customers as well as to registered enterprises located in special economic zones.
This could mean additional work opportunities for the hundreds of thousands of our displaced countrymen due to the recession, and not to mention the influx of more ‘job hunters’ as many will graduate from college in a few weeks time.
Sumitomo’s venture in the country is not limited to electronics and semiconductors. They are also to engage in warehousing operations, more specifically in storage, deposit, and importation of semi-finished goods, for sale to Philippine Economic Zone Authority-registered export enterprises.
Aside from that, they are also looking at nickel mining project in Surigao del Norte. They have also expressed interest, through its unit Sumitomo Fruits Corp (Sumifru), to expand its banana plantation business in Mindanao by additional P1 billion.
Sumitomo’s current investment in the country includes the First Philippine Industrial Park, which is a joint venture project with First Philippine Holdings Corp. of the Lopez’s. Internationally, they are the leading trader and distributor of steel, chemicals, mining, construction and finance.
