Japanese firm MinebeaMitsumi, export manufacturer of smartphone components, has become the first company to enjoy income tax holiday (ITH) given by a new policy by the Board of Investments (BOI).
MinebeaMitsumi yesterday energized its P500-million 7.9-megawatt solar power plant in a 6.8-hectare area in Danao, Cebu, one of its three existing manufacturing plants in the Philippines.
The energization comes ahead of the publication of Memorandum Circular (MC) 2023-006 amending MC 2022-008 providing for the Specific Guidelines ot Register Energy Efficiency and Conservation (EE&C) Projects under the Special Laws Listing, RA. . No. 1285, of the 2022 Strategic Investment Priority Plan.
In a press conference, BOI managing head Ceferino Rodolfo said the new MC entitles self-financed, the energy efficiency project (EEP) to ITH and duty exemption on importation of capital equipment, raw materials, spare parts or accessories.
Previously, EEP projects were not entitled to ITH.
But Rodolfo said the perks under the new MC are limited to the prescribed ITH entitlement period under the CREATE Act or until the recovery of 50 percent of its capital investment, excluding cost of land and working capital of the registered EEP, whichever comes first.
Tatsuya Mori, president and chief executive officer of MinebeaMitsumi, said the solar power plant has the biggest capacity out of all Japanese companies in the Philippines.
Mori said power generated will account for 8 percent of the plant’s consumption , offsetting about P80 million of the P1-billion annual energy bill of the plant.
“This is in response to the strong requirement of our biggest customers to shift to green energy as soon as possible,” Mori said.
He said the company is studying to implement solar rooftop power plants in its facilities in Bataan and in Batangas also in response to the Group’s direction towards the use of RE and achieve carbon neutrality by 2030 and 2050.
Caesar Augusto, group executive officer of MinebeaMitsumi, said the company last month started production of a second plant in Cebu, in Naga city Danao which is up for expansion this year and in 2024.
Augusto said the facility will have 800 employees by the end of the year and add another 2,000 to 3,000 next year.
MinebaMitsumi has 18,500 workers n Danao; 3,000 in Bataan and 1,000 in Batangas.
