Chinese e-vehicle facility crucial to city’s economy-A A +A
Sunday, December 22, 2013
THE success of the Chinese company, which is planning to put up a P1.3-billion assembly plant of electric vehicles in Davao City, will be crucial to the city's economy, an official said.
The facility will be utilized to assemble environment-friendly e vehicles such as bikes, jeepneys, and buses.
"They are one of several investors sent by the City Government of Shenzhen, China to venture in the overseas market. If their operations here in Davao City are gaining momentum and successful, other investors from Shenzhen will follow them here bringing huge amount of investments,” Davao City Investment Promotions Center (DCIPC) officer-in-charge Ivan C. Cortez told reporters Friday.
He said the City Government of Shenzhen is looking closely on the company's operations as a gauge if Davao City is ready to accommodate investors from Shenzhen. The company is sending reports on their transactions in the city.
Cortez said the company is currently processing their papers and targets to begin construction of the assembly plant in the first quarter of 2014 in a two-hectare land in Bunawan. Full operations are expected to begin in the second quarter.
"The two hectare land will be utilized for the assembly plant of their electronic bikes" he said.
Earlier, he said the company will first produce e-bikes that will test the local market. He said that an e-bike when fully-charged can run up to 60 to 80 kilometers per hour (KPH).
Cortez said the company will be sourcing 70% of their raw materials locally while the 30 percent will be imported from China. The company will generate some 200 jobs per shift for the construction and some 1000 jobs/shift when fully operational.
He also said the company is looking into tapping financial institutions for a rent-to-own program for motorists.
Earlier, Cortez said the company has chosen Davao City for their operations because they have noticed there are already existing laws and policies for businesses compared to other cities.
He also said that the company is qualified to apply for incentives since they are under one of the preferred industries -- light manufacturing and assembly - that will be given incentives.
Published in the Sun.Star Davao newspaper on December 23, 2013.