Germans still bullish on RP

German companies are upbeat about investment opportunities in the Philippines despite the global economic downturn.

Klaus Schroeder, president of the German-Philippine Chamber of Commerce and Industry Inc., said yesterday that German companies already in the country were expanding their operations despite the slump in global demand, which led to declines in the bilateral trade between the two countries.

“More business are already in the pipeline. There are new companies interested to invest in the Philippines. Moreover, some companies, which already have successful business in the Philippines, are planning to expand their services into new areas and they will announce their plans shortly,” said Schroeder.

He cited Southern Industrial Gases Philippines Inc., a unit of the Linde Group, which is opening a new air separation unit facility in Balamban, Cebu this month with investments of P1 billion. 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. It employs about 1,300 people.

Schroeder said Temic was optimistic that once the global economy recovered, perspective opportunities in the Philippines would look positive again.

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 services in the Philippines from the manning and recruitment. It now offers business process outsourcing with additional services in accounting and travel, which have been relocated from Europe to the Philippines.

“German-Philippine business relationship will continue to stay strong and has the potential to expand in spite of the economic downturn,” said Schroeder.

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 this quarter.

Philippine exports to Germany fell by 5.9 percent in 2008, while German exports to the Philippines dropped 2.5 percent.

“The decrease was mainly due to the strong negative effects which the global economic crises had on the electronic and semiconductor industry as well as the effects on the garment and furniture industries,” said Schroeder.

Electronic products account for more than 50 percent of all German imports from the Philippines and around 25 percent of exports to the Philippines.

“The recovery of the electronic and semiconductor industry will certainly have a positive effect on the trade volume in the coming months,” said Schroeder. –Elaine R. Alanguilan, Manila Standard Today