Japanese company Epson announced that are scheduled to build their largest factory in the Philippines in 2017, and they are expecting to employ more than 20,000 Filipino workers.
The factory is set to be an expansion for their plant in Lipa, which currently employs more than 12,500 employees. The expansion for the plant is expected to amount to at least 12.3 billion Yen, or 4.6 billion pesos.
Competitive and stable labor costs.
According to Toshimitsu Tanaka, Epson Philippines’ Country Manager, they have been eyeing the Philippines for the expansion because it has one of the most competitive labor cost in the region.
He also shared that China’s labor force has been increasingly becoming saturated and more expensive. The same also proves to be true for their second largest inkjet and projectors manufacturing plant in Indonesia, which has over 10,000 employees.
He disclosed that the company has no plans for further expansion in China because of labor costs. The labor cost of China’s factory workers is very high, almost 20% higher as compared to that of the Philippines. He also added that the labor in the Philippines is stable, which is ideal because it allows them to predict salary
Aside from cheaper and more stable labor costs, Tanaka also said that the English proficiency of Filipinos is also a huge advantage as compared to the Chinese and Indonesians.
Epson, or formally known as Seiko Epson Corporation is a Japanese electronics company, and is one of the largest leading manufacturers of computer printers, and information and imaging equipment. It is best known for its piezoelectric printing technology, or the “Micro Piezo”, and its LCD projection technology.
Epson first established a representative office in the Philippines in 1996, and finally upgraded to a full-fledged digital imaging solutions company in 1998. This 2016 is its 18th year of doing business in the Philippines.