Construction begins on new cycle factory in Philippines
Yamaha Motor Co. started construction on its motorcycle factory in the Philippines where manufacturing operations are scheduled to begin in January 2009, according to a company press release.
Investing more than $91 million for construction, Yamaha is expecting the facility to produce 150,000 motorcycle units annually and have an initial workforce of about 270.
The Philippines domestic market currently has an increasing demand for motorcycles, which is backed by a stable economy. In 2007, the demand grew 13 percent over the prior year period to 700,000 units. Currently the motorcycle ownership rate is one unit for every 40 people, and that number is expected to grow to 1 million units by 2010.
The new factory in the Philippines is a part of Yamaha’s new three-year management plan covering the period from 2008-2010. This one goal is a “further growth in sales and profitability in the ASEAN region.”
