THE Department of Agriculture (DA) has signed a deal for the development of the first ever local manufacturer of cargo tires in the country.

Agriculture Secretary Emmanuel Piñol inked the memorandum of understanding (MOU) with the Philippine Rubber Farmers Association (PRFA) and Phoenix Petroleum Philippines, Inc. on Tuesday in Malacañang.

“Other Asian countries have already established their own tire manufacturing company. Why can’t we also do that?” Piñol said.

The DA and its co-signatories agreed to invest in the Pilipinas Agila Tyre Manufacturing company and to conduct a feasibility study as part of preparatory activities for the establishment of the Pilipinas Agila factory in Mindanao.

Once fully operational, the facility could produce up to four million rubber tires every year for passenger vehicles, cargo, small pick-ups and agricultural machineries.

Pinol said the initiative could be a “game changer” in the local rubber industry.

“A tire factory in the Philippines will also mean a stable income for the country’s growing number of rubber farmers,” he said.

Last January, a group from the Black Donuts Engineering Inc. assessed the capability of farmers to operate the tire factory during a visit of rubber plantations in Mindanao. (SDR/SunStar Philippines)