Germans bullish on RP

German companies expanding in the Philippines

(Philippine Business Report, Nov. 2009)

Manila - German firms are upbeat on investment opportunities in the Philippines despite the global economic downturn.

German-Philippine Chamber of Commerce and Industry Inc. (GPCCII) President Klaus Schroeder said German companies in the country were expanding their operations despite the slump in global demand.

“More business are already in the pipeline. There are new companies interested to invest in the Philippines. Moreover, some companies, which already have successful businesses here, are planning to expand their services into new areas,” Schroeder said.

He cited Southern Industrial Gases Philippines Inc., a unit of the Linde Group, which newly opened a P1-B air separation unit facility in Balamban, Cebu last month. The new facility will produce low-temperature gases for the shipbuilding industry and liquid oxygen for supply to hospitals in Visayas and Mindanao.

Continental Temic, one of the biggest German investors in the Philippines, opened its third factory in Calamba, Laguna late last year and employs about 1,300 people.

Lufthansa Technik Philippines has expanded to Cebu to repair Boeing 777 aircraft and increased its workforce to 2,800.

Arvato Digital Service, a subsidiary of German publishing firm Bertelsmann, opened a 600-seat call center in Quezon City in February this year and planned future expansion.

German ship owner Peter Doehle of Hamburg expanded its manning and recruitment services in the Philippines. It now offers business process outsourcing (BPO) with additional services in accounting and travel, which have been relocated from Europe to the Philippines.

Schroeder, who also represents German shipping firm Hapag-Lloyd, said there were indications of a start in recovery in shipments of semiconductors and electronics products from the Philippines to Germany starting the third quarter. “The recovery of the electronic and semiconductor industry will certainly have a positive effect on the trade volume in the coming months,” Schroeder said.  

From: Philippine Business Report No. 21, November 2009.