China-based toy firm eyes city-A A +A
Wednesday, February 26, 2014
A BRITISH-OWNED China-based toy assembly and manufacturing company is planning to relocate in Davao City soon as the cost of doing business in China increases, an official said.
Davao City Investment Promotion Center (DCIPC) officer-in-charge Ivan C. Cortez, who graced Tuesday's edition of Davao Business Forum, said representatives of Best Power is in Davao City to hold talks with landowners in the industrial zone in Sasa for the establishment of the assembly plant.
"Their first phase will be the establishment of the assembly plant and if their operations here are successful, they will establish the manufacturing plant," he said, adding that the company will first assemble one line of toy for its test operation in the city and if it is successful they will increase to six or seven lines.
Cortez said the company makes 150 different lines of plastic toys and are targeting to relocate the manufacturing and assembly of the whole lines if operations are successful. He also said the toys produced by the company will be for export.
He said the success of the company will also bring in other manufacturers to the city because other manufacturers who are connected to the company also want to relocate their operations in Davao.
Cortez said they have provided a recommended list of locations in the industrial zone of the city to the company. He said the company is looking for a two to three hectare location for the assembly plant which will then progress to a assembly and manufacturing plant. He said the company will be meeting with the big landowners in the industrial zone this week.
He also said that the company is qualified to apply for incentives since they fall under the light manufacturing and assembly industry.
Cortez said the company is looking into the relocating in Davao City because for them it is no longer feasible to remain China due to the increasing cost of doing business. Also the Chinese government is not giving incentives to their industry anymore and shifting its focus to much bigger manufacturing industries like steel production.
Published in the Sun.Star Davao newspaper on February 27, 2014.