BY IRMA ISIP
[ Malaya.com.ph ] April 20, 2010
BAGUIO CITY -- The Baguio City Economic Zone is batting for the expansion of its area to accommodate more locators whose exports have been recovering following last year’s global financial crisis.
Zone administrator Dante Quindoza told reporters first quarter exports of Baguio zone locators have jumped 73 percent to $895 million in the first quarter of 2010 from $517 million in the same period in 2009.
Quindoza said about 95 percent of that or $850 million is accounted for by one single locator, chip manufacturing giant Texas Instruments.
The growth is on top of the 4.3 percent uptick registered by the locators in 2009, despite being a crisis year, when exports registered $2.86 billion from $2.74 billion the previous year.
"Baguio is one of the few ecozones which registered growth in exports in 2009," Quindoza said.
Baguio City ecozone has 13 manufacturing locators and 6 BPOs.
With the first quarter performance, employment improved to over 9,000 or nearly a thousand more from 8,060 in 2009 and from 7,700 in 2008.
Quindoza said a number of locators like aircraft precision parts Moog Controls, hand glove manufacturer, Adriste Philippines Inc. and some business process outsourcing (BPO) companies have indicated interest to expand while an Indian BPO intends to open a facility in the ecozone.
But he said the zone management does not have any more land to offer.
"Adriste is even willing to take the basketball court," Quindoza said.
Moog Controls recently expanded to an area annexed to John Hay and needs more space for its expansion under a five-year plan. The expansion is within a 6.5-hectare area within Camp John Hay. Quindoza said BPOs, which had been the saving grace of the zone in last year’s crisis, continue to hire.
The Baguio ecozone is now fully occupied and because of lack of space, had annexed a certain portion of property within Camp John Hay to accommodate the expansion of TI and Moog.
The zone has about 63 hectares in usable industrial area of which TI occupies 20 hectares.
A certain portion of the John Hay Economic Zone which is registered with the Bases Conversion and Development Authority has been annexed to Baguio City ecozone but the type of industries it could entertain are limited to ecotourism and BPOs.
"We cannot accommodate manufacturing because we have certain restrictions," Quindoza said.
Hillsford Property Corp., a company owned by Ayala Land Inc., recently broke ground within John Hay. It will build IT buildings to accommodate BPO companies.
Quindoza said the zone management has offered Hillsford to Indian firm Hinduja which is scouting for an area in Baguio for a 1,500-seater call center.
Other areas being looked at are Batangas and Iloilo.
The firm will handle technical support as well as inbound and outbound calls and would make a decision before the end of the year.
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