Japanese firms to continue operations in Phl – PEZA

MANILA, Philippines – Japanese firms in the country will continue their operations here and will not lay off any workers, the Philippine Economic Zone Authority (PEZA) said.

In fact, the twin disasters have prompted three Japanese firms to transfer some of their operations in their plants here.

In an interview with reporters yesterday, PEZA group manager promotions and public relations Elmer San Pascual said the tsunami has resulted in a temporary transfer of production here in the Philippines. “There are two to three firms that said they would like to expand their operations here.” He said the expansion will plug any production deficiency created by calamities in Japan.

“I don’t know where the news of retrenchment came from but that is not true,” San Pascual stressed. “Employees of Japanese firms operating in the Philippines need not worry that they will lose their jobs,” he added.

He said that the transfer of operations here will not directly result in the hiring of additional workers but depending on how long the transfer of operations are, San Pascual said the firms may opt to hire new workers for the production.

San Pascual said the Japanese firms operating in PEZA zones have a capacity of 85 percent to 95 percent. He said if the capacity balloons to 95 percent then the firm would have to undertake expansion activities.

“The Japanese are worried about the power supply there because they have rotating blackouts,” San Pascual said.

San Pascual said that of the 2,700 plus companies in the PEZA zones, 618 are Japanese. Most of the Japanese firms are in the electronics and semiconductor business. The rest are in auto parts including ship building. He said the Japanese firms in the auto sector have not yet indicated their desire to expand their operations here. –Ma. Elisa P. Osorio (The Philippine Star)