Firm chooses RP as site for Airbus galley factory

A MANUFACTURER of airplane interiors has chosen the Philippines as the site of its new $30-million factory which will produce Airbus kitchen structures, officials yesterday said.

B/E Aerospace, Inc. chose the country over 31 other investment sites to accommodate a “multi-billion-dollar contract to manufacture galleys for the Airbus A350XWB,” the British embassy said in a statement.

The country bested China, India, Thailand, Vietnam, Tunisia and Indonesia which were being considered as investment sites as well, the company’s Philippines Development Director Mark Henke said in an e-mail.

The operation, in the First Philippine Industrial Park economic zone in Batangas, will export its output to Marseille and Toulouse in France by 2012 and will generate 300 new jobs here.

“[We chose the Philippines because of its] good government tax policies for foreign direct investments, strong people skills and competitive labor rates,” Mr. Henke said. “Future expansion [could be possible] for different products and probably against contract awards.”

British Ambassador Stephen Lillie, in the statement, said: “I hope this will go to show that the Philippines offers opportunities for business success not only in the service sector but in manufacturing also.”

The UK has been the largest investor in the Philippines for the past decade, according to the British embassy. Combined net foreign direct and net portfolio investments from 1999-2009 amounted to $9.7 billion, rivalled only by Singapore with a much smaller $6.7 billion in cumulative investment.

“We hope the new Philippine administration will take proactive measures to create a more attractive investment climate for the Philippines, so that there will be even more projects like this,” Mr. Lillie said.

B/E Aerospace is said to be the leading manufacturer of passenger cabin interior products. — Jessica Anne D. Hermosa, BUsinessworld