KNAUF, a German manufacturer of insulation materials and plasters, remains committed to push through with a $50-million (P2.53-billion) investment in the Philippines to start local production of plasterboards, eyeing to start operations in 2018, the Department of Trade and Industry said.
In a message to reporters, Trade Secretary Ramon M. Lopez—who just wrapped up a trade and investment mission in Germany—said the manufacturer is committed to push through with its intent to locally manufacture plasterboards following the establishment of a local office last year.
“We had an excellent meeting here with the CEO of the German company Knauf, a leading manufacturer of gypsum-based plasterboard worldwide. They are investing $50 million to set up a new plant. That will be the beginning of their local production of plasterboards for the domestic and export markets,” Lopez added.
Direct jobs to be generated from this is estimated at 100. Initial, annual capacity is at 16 million square meters of plasterboards.
Knauf Gypsum Philippines Inc.—the entity to start local production—is a partnership between Knauf Gips KG of Germany and the German Investment and Development Corp. (Deutsche Investitions- und Entwicklungsgesellschaft).
The activity has been registered last year with the Board of Investments, receiving a pioneer project status, thus entitling it to an income-tax holiday for a maximum of six years.
A past statement by the Philippine Embassy in Berlin said Knauf had been considering investing in the Philippines since early 2014, and was one of six German businesses that met with then President Benigno S. Aquino III when he visited Germany in September 2014.
In August 2015, CEO of Knauf Manfred Grundke met with Philippine Ambassador to Germany Melita Sta. Maria-Thomeczek, and her economic team to firm up Knauf’s plans to invest in the Philippines.