The Japanese government is giving financial support of between 100 million and 5 billion yen to seven of their Philippine-based companies seeking to expand their supply chains as part of the sourcing diversification to avoid a repeat of disruption in operations brought by the new coronavirus disease 2019 (COVID-19) pandemic.
In a report, the Japan External Trade Organization (JETRO) said it is financially supporting these 7 Japanese manufacturers that will invest their capital equipment under its Program for Strengthening Overseas Supply Chains.
The program, which is being overseen by Japan’s Ministry of Economy, Trade and Industry, is not meant to facilitate transfer of companies to other countries.
The financial support will cover expenses for the introduction of facilities and equipment related to the supply of goods and materials through global supply chains with a high degree of concentration of the production bases or manufacturing plants, JETRO said.
“The COVID-19 pandemic has caused serious disruptions to global supply chains, resulting in shortages of various products. The primary cause of these disruptions is vulnerabilities in supply chains with a high degree of concentration of production bases. This program aims to enhance the viability of industries by strengthening supply chain resilience. It provides support for voluntary corporate initiatives for the purpose of diversification of the production bases in order to strengthen the supply chain resilience… including support for construction of additional manufacturing plants and enhancement of production/logistical efficiency by utilizing digital technologies,” JETRO said.
The report identified the companies as Arktech Philippines Inc. which produces precision sheet metal for semiconductor and medical devices; Taketora Philippines Inc., medical gowns; Yokoisada (Philippines) Corp., surgical masks for medical use; Arkray Industry Inc., electric circuit board for medical testing systems; Sytecs Manufacturing Philippines Inc., integrated circuit chip tray; Sumi Philippines Wiring Systems Corp., wiring harnesses for automobiles and; Rohm Electronics Philippines Inc., thermal printhead.
Under the program, Japan has allotted 100 million to 5 billion yen for Arktech, Taketora and Yokoisada covering two-thirds of the direct cost procurement and set-up of manufacturing equipment for their expansion and restructuring.
Between 100 million and 1.5 billion yen have been allocated for Sytecs, Arkray, Sumi and Rohm covering half of the direct cost of the direct cost of equipment.
Deadline for the support is March 2025.
JETRO said the actual amount supported by the Japanese government for each project has not been confirmed and the total amount of each investment project and other detailed information is not disclosed.
