Aboitiz sees demand for dual-site manufacturing operations

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ABOITIZ Economic Estates sees opportunities for manufacturers to establish operations in both northern and southern Luzon as companies seek to diversify supply chain risks and…

ABOITIZ Economic Estates sees opportunities for manufacturers to establish operations in both northern and southern Luzon as companies seek to diversify supply chain risks and expand their presence in the Philippines.

Aboitiz Economic Estates President and Chief Executive Officer Rafael P. Fernandez de Mesa said the company’s LIMA Estate in Batangas and TARI Estate in Tarlac could serve as complementary manufacturing hubs, allowing industrial locators to spread their operations across different locations.

“Having multiple nodes, one in the south and one toward the north, drives a more robust and resilient supply chain, affording companies dual centers of operation that serve as backups during global disruptions,” he said in an interview with BusinessWorld on Oct. 26.

Mr. Fernandez de Mesa said manufacturers are increasingly considering geographic diversification alongside traditional investment factors such as operating costs and ease of doing business.

He noted that rising industrial land prices in Southern Luzon, an established manufacturing hub, are creating opportunities for industrial expansion farther north.

“The south of Manila has historically been the manufacturing base of the Philippines and is the most mature. As development in the south has driven land prices up, moving toward the north becomes the [naturally] next frontier,” he said.

Mr. Fernandez de Mesa said about half of the companies expanding into LIMA and TARI come from the company’s existing network of industrial locators.

“About 50% of the new companies expanding in LIMA or in TARI come from within our existing ecosystem. For a company looking to expand without concentrating risk, having dual centers in Luzon provides a strategic way to scale while remaining in the Philippines,” he said.

The company is positioning its two estates to support manufacturing investments along the Luzon Economic Corridor, an initiative involving the Philippines, the United States, and Japan that seeks to strengthen…

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