Ayala Group setting up a plant in Serbia.
PICS: IMI websites
Ayala Corp. chair Jaime Augusto Zobel de Ayala talks to reporters at the sidelines of Manufacturing Summit 2016
The aim of every business, whether big or small, is to work professionally and grow both horizontally and vertically. In keeping with this worldwide trend, Integrated Micro-Electronics Inc. (IMI) is planning to set up a new manufacturing unit in Serbia. The proposed plant would be commissioned by 2018.
This step of the Ayala Corporation is not only part of its overall expansion plans but it also fits in well with their cherished desire to step into this region and cater to the demand of its growing clientele in Europe; the proposed plant will cater to the growing needs of the automotive sector.
This was announced by Zobel de Ayala, the Chairman and Chief Operations officer of IMI, while also holding the same posts in the parent company going by the name of Ayala Corp., at a news briefing; he also informed the members of the press that, after they had completed their ongoing expansions, the IMI would move to Serbia to take up the setting up of the manufacturing unit in Serbia.
The plant that would be manufacturing automotive parts would be starting production in 2018 within a year of the commencement of construction. The planned facility, which would be employing about 1250 on achieving full capacity in a time span of 10 years, has been estimated to cost about 30 million Euros (P1.58 billion) and, as informed by the Serbian government, will be set up in the city of Nis. This plan is in conformity to the latest trends in the strategies being adopted worldwide by manufacturers wherein the manufacturing needs to be as close as possible to the markets where end-users are located.
This phenomenon, which seeks to reduce transport and haulage charges while reducing the time taken for this activity, is a long-term strategy that seeks to enable savings for both the supplier and the end-user; it is known as near-shoring.
Such a course of setting up this plant in Serbia has been prompted by compulsions of the factors involved in outsourcings from goods manufactures in China; the attraction of bulk rates is not really so attractive anymore in view of the distance and costs involved in reaching the markets.
Zobel also cited the example of Lenovo that had taken this step about three years ago; they had set up a manufacturing facility for personal computers (PCs) so that the disadvantages of long haul and excessive time for transportation are obviated. The plant in North Carolina had taken care of these shortcomings and their services within the US had become more efficient and profitable.
So also, Zobel explained, was the case of Inditex that owns the Zara retail chain; they had decided to adopt the reverse strategy by limiting the radius of their apparel production to include only nearby countries and the region. Thus, in the interest of providing better service and maintain proper supplies, they had brought their operations to attain the expeditious trends in the fashion industry.
Hence, this is our effort at following market trends to do a better job in the field of electronic and automotive by locating the manufacturing in Bulgaria so that the markets are not far off, he said. Since the markets in Europe are the main users of our products, we have decided to move closer to the consumer markets and set up this plant in Europe by 2018.
Hence, the move is part of the strategy to keep pace with the fast-moving markets in Europe.
About Ayala Corporation
The Ayala Corp. is a diverse group hailing from the times of the Spanish colonial rule; this Filipino group was set up by Domingo Roxas in 1834, it has built itself up into a conglomerate of massive proportions with assets worth upward of $50 billion making it the largest Filipino corporate entity.
Now ably led by Jaime Augusto Zóbel de Ayala (Chairman and CEO) Fernando Zóbel de Ayala (President and COO) with its headquarters at Makati in the Philippines, it has made its presence felt in the following fields:
• Business Process Outsourcing,
• Electronics,
• Telecommunications,
• Banking,
• Real estate,
• Information Technology,
• Education,
• Renewable Energy,
• Retail,
• Water Infrastructure, and
• Healthcare and management.
Umrao Singh
umraoz.wordpress.com
Written for: Lars-Magnus Carlsson
www.thephilippinepride.com?utm_source=rss&utm_medium=rss
Wednesday, 30 November 2016
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