PHILIPPINES: PRFA, Phoenix Petroleum partner for tire manufacturing

Phoenix Petroleum Philippines, Inc. is looking to produce cargo tires locally, in partnership with the Philippine Rubber Farmers Association (PRFA) and the Agriculture Department.

Agriculture Secretary Emmanuel F. Piñol signed a memorandum of understanding with Davao City-based Phoenix Petroleum Philippines, Inc. Chief Executive Officer Dennis Uy and Philippine Rubber Farmers Association (PRFA) President Armando Zaragoza for the establishment of the country’s first cargo tire manufacturing facility on 7 March 2017 in Malacañang (Presidential Palace).

“Other Asian countries have already established their own tire manufacturing company. Why can’t we also do that?” Agriculture Secretary Emmanuel F. Piñol was quoted as saying in a statement.

The parties agreed to invest in the Pilipinas Agila Tyre Manufacturing Company, as well as conduct a feasibility study on the establishment of a factory in Mindanao.

The proposed facility is envisioned to produce up to four million rubber tires annually for passenger vehicles, cargo, small pick-ups and agricultural machinery.

The PRFA looks to tap Filipino rubber farmers for the project, while Phoenix Petroleum will extend financial and technical assistance to farmers for the establishment of the tire factory.

“A tire factory in the Philippines will also mean a stable income for the country’s growing number of rubber farmers,” Mr. Piñol said, adding that this could be a “game changer” to the sector.

Black Donuts Engineering, Inc. had been invited to take a look into the country’s rubber industry to see if it can be a source of natural rubber.

The USD 200-million budget will be used for the construction of the facilities which is planned on a 50-hectare land in Davao. Construction is expected to take two years before operations begin.

According to the data of the Philippine Rubber Research Institute, local rubber output last year reached 110,000 tons, higher than the 100,000 tons level in 2015.

At present, Yokohama Tire Philippines, Inc. is the only manufacturer of car tires in the country which produces around 21,000 tires per day. It sources the bulk of its natural rubber requirement from Indonesia due to the poor quality of those produced in Mindanao.

Source: Daily “Business World Online”, Manila; 9 Mar 2017

(Syed Rashid Ali, Karachi, Pakistan)