Cebu Pacific seals 'largest deal' in PH aviation, to buy 152 Airbus planes at P1.4 trillion

 Cebu Pacific seals 'largest deal' in PH aviation, to buy 152 Airbus planes at P1.4 trillion

Arthur Fuentes, ABS-CBN News

Published Jul 02, 2024 04:42 PM PHT

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Updated Jul 02, 2024 05:20 PM PHT

(UPDATE) - Cebu Pacific is buying over a hundred new planes as it further ramps up operations, the Philippines’ largest airline said on Tuesday.

The Gokongwei-led carrier said it signed a binding Memorandum of Understanding (MOU) with Airbus to buy up to 152 A321neo aircraft for $24 billion, or around P1.4 trillion.

The company said this was the largest aircraft order in Philippine aviation history.

The deal covers firm orders for up to 102 A321neo planes, plus 50 A320neo units.

“The order is designed to provide Cebu Pacific with maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between the A321neo and A320neo,” said Cebu Pacific CEO Michael Szucs.

“When finalized, the deal will be a significant milestone for the local airline industry and a testament to CEB’s unwavering commitment to support the Philippine growth story.”

The purchase agreement to finalize this transaction is expected to be completed in the third quarter of the year, the company added.

Cebu Pacific reversed a P14 billion loss in 2022 to make P7.9 billion in net income in 2023 on the back of stronger demand for air travel. 

The airline said it flew over 20 million passengers on more than 140,000 flights in 2023, up 41 percent and 31 percent, respectively, from 2022 figures.

The company also earlier said its net income doubled in the first quarter of the year as travel demand remained strong.

Net income grew to over P2.2 billion in the first three months of 2024, higher by 108 percent over the same period last year.

In June, the airline announced a program to train more cadet pilots as it expands its fleet. 

Airlines have roared back after the Covid-19 pandemic, with passenger numbers and revenues expected to hit record highs this year, trade body IATA said in June.

The International Air Transport Association said nearly five billion passengers were expected to fly in 2024 and revenues would near $1 trillion.

But airlines are also facing a sharp rise in costs caused by shortages of parts and labour, and challenges related to climate change.

Their total expenses are also expected to hit a record high this year, climbing 9.4 percent to $936 billion, IATA said.

At a Singapore airshow in February, Szucs told AFP that Cebu Pacific had a "shortfall in capacity" owing to aircraft grounded or delays in deliveries.

"It's just never been more difficult to keep the fleet flying," he said.

- With a report from Agence France-Presse

PEZA approved P12B investments in Jan.-Feb. 2024

 

PEZA approved P12B investments in Jan.-Feb.

By TED CORDERO, GMA Integrated News

Published February 20, 2024 11:44am

The Philippine Economic Zone Authority (PEZA) has approved over P12 billion worth of investment commitments during the first two months of 2024.

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In a statement on Tuesday, PEZA said it has given the thumbs up for P12.096 billion in investments in January to February this year, up 18.66% in the same period last year.

“The significant upswing in our investment performance within two months underscores our commitment to achieving our target of P250 billion investments for this year,” said PEZA Director General Tereso Panga.

So far this month, the investment promotion agency approved 16 projects, composed of nine ecozone enterprises, three IT enterprises, one domestic market, two ecozone logistics services, and one developer.

PEZA said the approved projects are expected to generate P9.884 billion in investments, create 2,243 direct jobs, and yield $591.476 million in exports.

 

The approved projects are located in the First Philippine Industrial Park II (FPIP II-SEZ), Daiichi Industrial Park (DIP-SEZ), Light Industry & Science Park III (LISP III-SEZ), Laguna Technopark (LT-SEZ), PHIVIDEC Industrial Estate - Economic Zone, Lima Technology Center (LTC-SEZ), Mactan Economic Zone II (MEZ II – SEZ), People Technology Complex (PTC-SEZ), 1 Nito Tower in Cebu City, Embarcadero De Legazpi in Legazpi City, Albay, Light Industry & Science Park IV (LISP IV – SEZ), and Hermosa Ecozone Industrial Park (HEIP-SEZ).

In January, PEZA greenlit P2.21 billion worth of 12 projects which are expected to $69.62 million worth of exports and 1,337 direct jobs. 

Broken down, the 12 projects were composed of seven ecozone export enterprises, four information technology enterprises, and one facilities enterprise. 

 –VAL, GMA Integrated News

 

PEZA OKs 12 projects worth P2.21 billion in January 2024

 

PEZA OKs 12 projects worth P2.21 billion in January

By TED CORDERO, GMA Integrated News

Published February 2, 2024 3:31pm
Updated February 2, 2024 3:30pm

The Philippine Economic Zone Authority (PEZA) approved P2.21 billion worth of new and expansion projects in the first month of 2024.

In a news release on Friday, PEZA said the 12 projects it green-lit would generate $69.62 million worth of exports and 1,337 direct jobs.

Broken down, the 12 projects were composed of seven ecozone export enterprises, four information technology enterprises, and one facilities enterprise.

“We are proud to have closed more than P2 billion worth of investments in the first month of 2024, and confident of securing more investments which are already in PEZA’s pipeline and waiting for approval in the coming months,” said PEZA Director General Tereso Panga.

The investment promotion agency said the projects would be located in the following ecozones:

• Cavite Economic Zone (CEZ)
• Cavite Technopark-Special Economic Zone (SEZ)
• Laguna Technopark
• Lima Technology Center-SEZ
• Carmelray Industrial Park II-SEZ
• Laguna Technopark Annex-SEZ
• First Philippine Industrial Park
• Giga Tower Bridgetowne IT Park in Quezon City
• Southwoods Mall in Laguna City
• Panorama Tower in Bonifacio Global City
• Jazz IT Center in Makati City

The approved investments were presented during PEZA’s first board meeting in Baguio City from January 25 to 27, 2024. — DVM, GMA Integrated News

 

 

Laguna factory to export electric 'big bikes' to EU

 Laguna factory to export electric 'big bikes' to EU

ABS-CBN News

Posted at Jul 25 2023 08:28 PM | Updated as of Jul 25 2023 08:35 PM

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MANILA -- The high-powered electric motorcycles being built by an Ayala-led firm in Laguna will be primarily exported to the European Union, an official of the American EV brand said on Tuesday. 

“In the first few years, the majority of the motorcycles that IMI will be producing for us will be for export into the EU market,” said Zero Motorcycles CEO Sam Paschel.

The EU remains Zero’s largest market for its electric motorcycles, Paschel said in an interview with ANC's "Business Roadshow." 

Zero recently partnered with the Ayala Group's electronics manufacturing unit IMI to launch the first electric “big bike” assembly line in the Philippines.

According to its website, Zero sells a range of electric bikes which have a range of up to 301 kilometers, and are capable of producing 110 horsepower, and hitting top speeds of up to 200 kilometers per hour.

This is one of the smartest and most complex vehicles on the planet," Paschel said.

He added that while they see these motorcycles being sold in the Philippines, the company is “not solely reliant” on sales in the country, as these EVs need investments in public charging infrastructure. 

IMI CEO Arthur Tan meanwhile said they see the factory contributing to the growth of the e-bike market, both locally and globally

 “So this is something that we’re looking not just to serve the Philippine market, which is quite nascent, but also the global market, especially out in Europe and rest of Asia," he said.

He also said the Philippines could be the leader in the e-bike industry in the region.

"So being able to make that transition into the electric motorcycle not only cuts costs on the operating cost and the fuel cost that necessary to drive our economy, but also in general, allow us now to become the leader in this segment within the region," he said.

Tan also said the e-bike industry should be seen as a way for the Philippines to "leapfrog its neighbors."

IMI will be assembling batteries, motors, building all the electronics that sit at the core of the operating system of Zero’s electric motorcycle, Paschel said. 

--ANC, 25 July 2023

 

Philippine factory growth hit 10-month high in January

Philippine factory growth hit 10-month high in January

By JON VIKTOR D. CABUENAS, GMA Integrated News

Published March 9, 2023 11:48am

The Philippines opened 2023 with a rebound in factory production after growth hit a three-month low recorded last December, government data released on Thursday showed.

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Preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI) of the Philippine Statistics Authority (PSA) showed that the volume of production index (VoPI) expanded by 10.6% year-on-year in January.

The latest expansion compares with the 4.2% in December and 10.9% in the previous year. It is the fastest expansion in 10 months since March 2022’s 346.1%.

Higher annual growth rates were recorded in the manufacture of food products (17.3%), beverages (31.1%), other non-metallic mineral products (22.6%), and other manufacturing and repair and installation of machinery and equipment (30.5%).

After the contractions in December, rebounds were seen in the manufacture of electrical equipment (53.5%), transport equipment (24.3%), wearing apparel (13.7%), recorded media (13.0%), pharmaceutical products (11.2%), textiles (11.1%), tobacco products (1.6%), and basic metals (0.8%).

Meanwhile, slowdowns were reported in the manufacture of leather (14.9%); wood, bamboo, cane, rattan (11.0%); machinery and equipment except electrical (8.4%); chemical and chemical products (6.9%); and paper (0.8%).

Contractions were reported in the manufacture of coke and refined petroleum products (-11.6%); computer, electronic, and optical products (-7.3%); rubber and plastic products (-5.7%); fabricated metal products (-3.0%); and furniture (-18.9%).

The average capacity utilization rate for the month was recorded at 72.6%, higher than the 71.5% recorded in December. Some 21.1% of establishments operated at full capacity, while 39.3% operated at below 70% capacity.

In terms of the value of production index (VaPI), growth clocked in at 15.4%, faster than the 9.5% in December and 15.1% the same month in 2022.

The latest data are in line with results of the S&P Global Philippines Manufacturing PMI, which compiles responses of purchasing managers in a panel of around 400 manufacturers across the country.

“Overall, strong domestic demand fed into higher optimism for the year ahead,” S&P Global Market Intelligence Maryam Baluch said in an earlier commentary.

“Moreover, the lack of COVID restrictions, greater investment in new products and undertaking new projects aided hopes of a prosperous year for the Filipino manufacturing sector,” she added.—AOL, GMA Integrated News

 

 

Japanese semiconductor firms pledge billions of pesos in investments to Philippines

By TED CORDERO, GMA Integrated News

Published February 9, 2023 2:24pm

TOKYO— Japanese semiconductor companies have committed to invest “billions of pesos” to the Philippines - which could generate over 10,000 jobs - during the second day of President Ferdinand Marcos Jr.’s working visit here.

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On Thursday morning, Marcos presided over the roundtable meeting attended by top executives from Japan's semiconductor and electronics firms - Japan Aviation Electronics Industry, Ltd.; Yazaki Corporation; Yokowo Manufacturing of the Philippines; Sumitomo Electric Industries, Ltd.; Brother Industries, Ltd.; IBIDEN Co., Ltd.; Seiko Epson Corporation; NIDEC-SHIMPO Corporation; and TDK Corporation - who are looking to expand their operations in the Philippines.

The total amount of investment commitments will be announced by the  President on February 10, 2023 during the signing of the letters of intent by the Japanese companies, according to the Presidential Communications Office.

The investment pledges are expected to generate more than 10,000 jobs, which are seen to boost the administration’s initiative to create more jobs for Filipinos.

In his remarks during the roundtable meeting, Marcos said the country aspires to become “hubs of excellence for sectors where we have a natural comparative advantage.”

𝐏𝐄𝐙𝐀 𝐰𝐞𝐥𝐜𝐨𝐦𝐞𝐬 𝐬𝐢𝐠𝐧𝐢𝐧𝐠 𝐨𝐟 𝐂𝐑𝐄𝐀𝐓𝐄 𝐢𝐧𝐭𝐨 𝐥𝐚𝐰

 𝐏𝐄𝐙𝐀 𝐰𝐞𝐥𝐜𝐨𝐦𝐞𝐬 𝐬𝐢𝐠𝐧𝐢𝐧𝐠 𝐨𝐟 𝐂𝐑𝐄𝐀𝐓𝐄 𝐢𝐧𝐭𝐨 𝐥𝐚𝐰

April 7, 2021 (Wednesday)

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The Philippine Economic Zone Authority has welcomed the signing of a new law Republic Act. No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, by President Rodrigo Duterte last March 26, 2021.

The CREATE Law aims to gradually lower the corporate income tax from 30% to 25% and streamline the government’s fiscal incentives for investments both covering foreign and domestic enterprises.

PEZA Director General Charito “Ching” Plaza has expressed gratitude to the President and the Congress for considering most of the concerns and suggestions from the industry associations and PEZA-registered export industries that had been expressed and submitted to the House of Representatives and the Senate since the deliberations began as TRAIN 2, to CITIRA, and now the CREATE Law.

“We are happy with the final CREATE Act after all those years of struggle. We recognize the need to gradually change and reform the national tax or revenue system yet at the same time address the need to maintain and attract investors’ confidence in the Philippines, especially during this time of the pandemic,” said Plaza.

The PEZA Chief added, “Although CREATE may offer 'win some, lose some' opportunities for the different industries, we are glad that CREATE sustained our argument and has placed a high premium on export-oriented enterprises with their availment of superior fiscal incentives particularly for new projects that will be applied with the IPAs like PEZA.”

“Now that the passage of CREATE law is done, it creates stability in taxation regime and PEZA as the top export-oriented investment promotion agency can aggressively pursue marketing and promotion of our economic zones to global investors,” she added.

The PEZA Chief said that there’s a need to communicate to existing and new investors the impact of the CREATE law to export-oriented industries while pushing the momentum and efforts to attract investments through marketing and promotion activities.

𝐄𝐱𝐭𝐞𝐧𝐬𝐢𝐨𝐧 𝐨𝐟 𝐚𝐯𝐚𝐢𝐥𝐦𝐞𝐧𝐭 𝐨𝐟 𝐢𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞𝐬 𝐟𝐨𝐫 𝐞𝐱𝐢𝐬𝐭𝐢𝐧𝐠 𝐑𝐁𝐄𝐬

One of the items vetoed by the President which may have a big effect on the country’s existing foreign direct investors is the removal of the extension of availment of tax incentives by existing registered business enterprises (RBEs) given that the "extension of incentives for existing projects is unfair to ordinary taxpayers / unincentivized enterprises and further, only new activities and projects deserve fresh incentives."

Under CREATE, RBEs have no choice but to make do with the 10-year sunset period (after the lapse of ITH) and thereafter, graduate to the regular 25% CIT rate.

As explained by Deputy Director General for Policy and Planning Mr. Tereso Panga, “This scenario could be a make or break for the Philippines as the affected ecozone locators, for example, might decide to retain their facilities and invest in new projects to be entitled to a longer ITH and SCIT period (total of 14- 17 years) or worse, they might just pack up and transfer to a more willing host-country that can offer better incentives for their investments as their availment of more advantageous incentives for sunk projects with the IPAs prior to CREATE were cut short by the mandatory sunset period for RBEs.”

Nevertheless, Plaza remains hopeful that the locator companies will be able to cope with the new conditions and the Philippine economy will be able to bounce back with a much inclusive growth for the country.

“We believe that effective governance will be pivotal in our resolve to retain, expand and attract investments into the ecozones under the CREATE regime, and in due time, our existing locators will be able to adjust to CREATE and continue to secure their investments in the Philippines,” she said.

PEZA is currently preparing its inputs to the Implementing Rules and Regulations (IRR) of the RA 11534 and will soon conduct a series of dialogue with its locator companies to further discuss the impact or benefits of the CREATE Law to PEZA and its registered enterprises.

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Reference: PEZA facebook page=https://www.facebook.com/PEZAPH/

May 21, 2020 - Philippines lures 7 foreign firms with businesses in China

PH lures 7 foreign firms with businesses in China

By Kris Crismundo  May 21, 2020, 6:24 pm

Trade Undersecretary Ceferino Rodolfo

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Trade Undersecretary Ceferino Rodolfo

MANILA – Trade Undersecretary Ceferino Rodolfo said seven foreign companies with businesses in China have diversified their operations in the Philippines.

 

These companies registered their projects with investment promotion agencies (IPAs) attached with the Department of Trade and Industry (DTI), the Board of Investments (BOI), and the Philippine Economic Zone Authority (PEZA) from 2018 to February 2020.

 

Their investments reached PHP1.6 billion, said Rodolfo, who is also the managing head of BOI.

 

Dutch company Head Group has the biggest investments amounting to PHP1.12 billion for manufacturing of tennis balls.

 

Five companies are from Taiwan with combined investments of PHP444.63 million. Their projects involve manufacturing and exporting marine accessories, internet accessories, parts and equipment, audio appliances, health products and luggage. 

 

American firm Ever Win International Corp. invested PHP21.4 million for manufacturing of consumer electronics.

 

Rodolfo said the Philippines positions itself as a complementary host country for investments of companies that have operations in China, particularly in the manufacturing industry.

 

Many multinational companies with businesses in China are eyeing to diversify their investments outside the East Asian country.

 

The trade official added these firms are relocating and diversifying outside China even before the coronavirus disease 2019 (Covid-19) pandemic due to the trade tension between China and the United States. (PNA)