S. Korean agricultural equipment firms setting up shop in Cabanatuan

THE Department of Agriculture (DA) said on Tuesday that it will build an agricultural machinery manufacturing complex in Cabanatuan in partnership with the Korea Agricultural Machinery Industry Cooperative (KAMICO).

“They will be constructing the first agri-machinery manufacturing and assembly line in the Philippines. This is the first in the country for this type,” Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa told BusinessWorld on the sidelines of a Senate budget hearing.

He added that about 30 South Korean agricultural equipment companies are expected to operate from the Korea Agri Machinery Industry Complex.

The DA said that complex hopes to stimulate manufacturing, enhance crop quality, increase farmer incomes, and produce agricultural machinery tailored to Philippine conditions.

“So… they can also help the Philippines, they have decided to invest here in an assembly plant,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said.

The DA and the KOICA signed a Memorandum of Understanding to build the facility in Nueva Ecija’s largest city.

“It’s about 20 hectares in Cabanatuan that will house the investments coming from the Korean companies,” Mr. De Mesa said.

The site will also host research and development and training facilities.

Mr. De Mesa said the site will be developed in phases over 10 years.

“This includes the initial assembly line, then manufacturing, and then lastly the research and development to adapt the products to local conditions,” he added.

He said that the facility is expected to start construction before the end of the year.

“We are just fixing the permits, documents, and other arrangements. So, we’re hoping to break ground before the year ends,” he said. — Adrian H. Halili