Manila – The Philippines government and Finnish tire consultancy Black Donuts Co. (BDC) are working together to set up a tire plant in the country, according to BDC president and CEO Kai Hauvala.
A team from the Finnish company spent last week negotiating with Filipino officials about the construction of the new plant.
“We are in talks with the Philippines government to offer analysis on the feasibility of building a new tire plant in the country,” Hauvala told ERJ.
Negotiations covered the construction of a €190-million plant, possibly in the Mindanoa region, with the capacity of 4 million tires a year in the first phase.
Speaking to ERJ, the BDC official said passenger car and SUV tire are currently the “most preferred” option, but not finalised yet.
“There is no any licensing talks in this phase. Final structure and partners will be studied/decided later.” added Hauvala.
According to the official, a majority of the tires produced will be supplied to domestic market.
However, exports will also be made as Asian economies are growing, he added.
More details about the project are expected in February.
According to Hauvala, the plant is being set up to generate more added-value for natural rubber resources in the Philippines and create new industry platforms. The goal, he explained, is to create jobs, expand upstream and add more natural rubber plantations.
In December 2016, the Philippines board of investment approved local petrochemicals group, JG Summit, to go ahead with a €290-million investment to expand olefins and aromatics production in the country.
The investment will be made in Batangas City, where JG Summit operates the country’s only naphtha cracker.