Japanese-based Kobe Steel, Ltd. has stepped into the Philippines by opening a new compressor service company in the South East Asian country.
Kobelco Machinery Philippines Inc. (KMP), situated in Makati City in the country’s capital, has opened and is now in full operation. Under a total capital worth of PHP43m ($854,000), it currently employs 21 people.
KMP will provide an optimal framework for supervisor dispatch services and engineering work for Kobe Steel’s nonstandard compressor business in the region.
The Philippines is now the fourth country where Kobe Steel has local supervisors, where the company plans to use KMP to increase orders for compressors and after-sales service in the region.
It is understood that Kobe Steel will transfer some of its engineering work currently undertaken at its Takasago Works complex in Japan to KMP.
A statement read, “As one of the world’s leading manufacturers of compressors, Kobe Steel plans to expand its services in the region through KMP in the Philippines and set down roots in areas of demand to grow its global business.”
The new business is a wholly-owned subsidiary of Kobelco Machinery Asia Pte. Ltd. in Singapore, which in turn is 100% held by Kobe Steel.
The Japanese business plans to record an increase of more than 40% in 2020 compressor sales compared to fiscal 2016.