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."