Nestor Martin C. Marfori, general manager of Cummins Sales and Service Philippines Inc., said the company is targeting to grow its 2010 revenues of $21 million to about $25 million this year and then $30 million in 2012.
Marfori said despite the strong growth, the company believes it would do better once the current problems being encountered by the mining industry, particularly at the local level, are resolved.
“Our growth is being stunted by mining because it is not growing (as fast as it should be growing). But once mining has picked, there would be more opportunity for Cummins here,” Marfori told the BusinessMirror.
Right now, Marfori said the company is seeing brisk sales from the real property developers for Cummins-made generators, and from the marine sector for its engines. The company is also providing after-sales support services to mining companies that are making use of equipment fitted with Cummins engines, including engine reconditioning and rebuilding.
Gino Butera, executive managing director of Cummins Asia Pacific, said the Philippines represents only a small portion of the company’s $$1.2-billion Asia-Pacific business.
“But we are really excited about the mining business here. That is where we want to grow,” Butera said.
In Asia-Pacific, he said, Australia generates the highest revenues for Cummins because of the mining industry there.
Pamela Carter, president of Cummins Inc., said the company’s current manufacturing hub for the region is in China, although it is now closing the door on the possibility of putting up a production facility or warehousing center here to support requirements in Southeast Asia.
“That is why we came for this visit, to see what is going on in the Asean and how we can meet all the region’s needs. We are looking at how we can maximize our footprints. Right now we have enough capacity and we are producing ahead of demand so it is also important for us to see where there is enough incentive for us to put up warehousing and logistics for our supply chain,” Carter said.
