The Department of Agriculture (DA), Philippine Rubber Farmers Association (PRFA) and Phoenix Petroleum Philippines have signed an MoU for the development of the first-ever local manufacturer of cargo tires in the country at the Malacańan Palace.
The companies are to invest in the construction of a new factory, which will be called the Pilipinas Agila Tyre Manufacturing facility. They have also agreed to participate the conduct of preparatory activities including the kick-off of a feasibility study for the establishment of the Pilipinas Agila factory in Mindanao.
Agriculture secretary, Emmanuel F Pińol, said the initiative could be a game-changer in the local rubber industry.
“Other Asian countries have already established their own tire manufacturing companies – why can’t we also do that? A tire factory in the Philippines will also mean a stable income for the country’s growing number of rubber farmers,” he said.
The DA has organized groups of rubber farmers, which formed the PRFA with the aim to mobilize Filipino rubber farmers to become active partners of the government in promoting their own welfare and in the development of the rubber industry in general.
Meanwhile, Phoenix Petroleum, in partnership with Black Donuts Engineering (BDE), is to help in the financial and technical assistance of farmers for the establishment of the tire factory. Last January, a group from BDE visited rubber plantations in Mindanao to assess the capability of farmers to operate the tire factory.
Once fully operational, the facility is expected to produce around four million rubber tires every year for passenger vehicles, cargo, small pickups and agricultural machinery.
March 14, 2017