Ayala plans expansion with Yamaha

Ayala plans expansion with Yamaha

MANILA (AFP): Yamaha Corp. of Japan and the electronics subsidiary of Filipino conglomerate Ayala Corp. are planning a US$113 million expansion of a new tie-up and may form a joint venture firm, the two companies said yesterday

Yamaha and Ayala's wholly-owned subsidiary Integrated Microelectronics Inc. (IMI) inaugurated a 980 million-peso ($37.69 million) manufacturing facility outside Manila on Thursday for thin film heads and gimbal assemblies.

IMI would build three additional plants with Yamaha providing the technology under a subcontracting arrangement, said IMI President Francis Ferrer.

The newly opened plant is expected to have annual sales of 270 million pesos. The additional investment would increase production four-fold, he said.

Production is to be exported to Japan, which Yamaha will distribute to major consumers. The products are hard disk components.

The facility is Yamaha's first major investment outside Japan, where it is under pressure from the appreciating yen.

Yamaha managing director Kazukiyo Ishimura told reporters his company was satisfied with the existing subcontracting arrangement with IMI, but that the two firms may form a joint venture "if need arises."