Ayala’s IMI inks $250m deal with American car maker to set up first e-motorcycle factory in the Philippines
IMI is set to assemble around 18,000 Zero e-motorcycle units each year in its manufacturing plant in Laguna.
Ayala’s Integrated Micro-Electronics, Inc (IMI) has inked a $250m deal with US-based Zero Motorcycles to set up the first-ever electric motorcycle manufacturing plant in the Philippines.
The partners signed a cooperation agreement on Monday in which California-based Zero Motorcycles agreed to subcontract its manufacturing operations to IMI with a total investment of around $250m over the next five years that could generate revenues worth $65m each year.
In its facility in Laguna, a province located southeast of Manila, IMI will be assembling in full Zero’s e-motorcycle units for export to its overseas markets like Asia and Europe, including partial and modular assemblies of other motor parts like batteries.
“This is considered a historic agreement because it is a pioneering activity involving high-end electric batteries, motors and motorcycle assembly,” the country’s trade secretary, Fred Pascual said in a statement. “With this investment, we will be better positioned as an export manufacturing hub for electric batteries and vehicles.”
The companies aim to start the mass production in June with a goal of producing 18,000 e-motorcycles annually. The government estimates it will create 200 new jobs for Filipinos.
Philippine-based IMI is the manufacturing arm of AC Industrial Technology Holdings, a wholly-owned subsidiary of Ayala, which operates in 20 facilities across ten countries, specializing in the automotive, industrial electronics and the aerospace sectors.
Zero’s chief executive officer Sam Paschel said the Southeast Asian nation is the “strongest choice” for them to set up a global manufacturing base especially with Ayala and IMI’s technical capacity and existing facilities to do both electronics and industrial assembly.
“Expanding our manufacturing footprint into a new region allows Zero Motorcycles to efficiently scale up to meet the rapidly growing demand for our products and improve customer delivery and satisfaction in the fast-growing EV market,” Paschel said in a statement.
The signing ceremony was held in the US with the presence of Philippine president Ferdinand Marcos Jr. together with Pascual.