Sumitomo expands wiring harness operation in PH

Published September 18, 2020, 5:00 AM

by Bernie Cahiles-Magkilat

Sumitomo Wiring Systems, Ltd., a subsidiary of Sumitomo Electric, is investing in a wiring harness manufacturing facility in Pangasinan that would generate 10,000 jobs. 

Trade and Industry Secretary Ramon M. Lopez said the project is located in the Northluzon Aero Industrial Park (NAIP). The groundbreaking ceremonies on Wednesday, September 16, was led by Takeshi Morikawa, President (Sumi North-Philippines Wiring Systems Corporation)  and Masaru Yamamoto, Vice President (SNPW)  and local officials of Binalonan, Pangasinan.

“Not only will the Sumitomo factory generate more jobs and employment for communities in the area, it will boost the development of our wiring industry to become part of the global value chain,” said Lopez.  

Except for the estimated 10,000 jobs generation, there was no breakdown as to Sumitomo wiring harness project’s investment. There were no details also provided regarding production capacity, exports market and start of commercial operation.

But Lopez said the Sumitomo investment is one of the 26 business agreements signed during the visit of President Rodrigo Duterte to Tokyo, Japan last May 2019. The Trade Secretary spearheaded the President’s Business Program in Tokyo, amassing agreements valued at P289 billion that would bring in new job opportunities for 82,000 workers.  

Among the agreements was a Letter of Intent (LOI) signed by Sumitomo Electric Industries, Ltd. President and COO Osamu Inoue to build a new factory for wiring harness and related products in Northern Luzon, for export to Japan and North America.  

Following this, Sumitomo Wiring System set up a new subsidiary in the country last September 2019, its 9th in the Philippines. The company was registered under the Security and Exchange Commission (SEC) with the name of Sumi North-Philippines Wiring Systems Corporation (SNPW).  

“With the introduction by Sumitomo Wiring of its patented technologies in high voltage wire harness product manufacturing operations in the country, DTI’s push for innovation and technology-driven value-added production for local industry development in the Philippines has borne fruit,” Secretary Lopez said.  

The DTI field office in Tokyo, Japan has been working in tandem with the Board of Investment (BOI) in the hand-holding process leading up to the project’s materialization.  

Senior Trade Representative (STR) Dita Angara-Mathay said, “We are working towards cementing the Philippines’ role as a competitive hub for wiring harness production in the region. With eight players already operating in the country, we are expecting one more investor from Japan to join this ever growing group of foreign investors in wiring harness manufacturing.”  

Established in 2017, Sumitomo Wiring System is a leading global supplier of wiring harness, related components, and several electronic products to the automotive and office equipment industries.  

According to BMI Research, global sales of cars and light vehicles have been growing at 90 million per annum. Demand is expected to increase annually by 3.6 percent.  

However, the Philippines’ share in the global wiring harness market of $80 billion is at 6.5 percent.