By Juliana Chloe A. Gonzales, Reporter
ABOITIZ Economic Estates sees opportunities for manufacturers to establish operations in both northern and southern Luzon as companies seek to diversify supply chain risks and expand their presence in the Philippines.
Aboitiz Economic Estates President and Chief Executive Officer Rafael P. Fernandez de Mesa said the company’s LIMA Estate in Batangas and TARI Estate in Tarlac could serve as complementary manufacturing hubs, allowing industrial locators to spread their operations across different locations.
“Having multiple nodes, one in the south and one toward the north, drives a more robust and resilient supply chain, affording companies dual centers of operation that serve as backups during global disruptions,” he said in an interview with BusinessWorld on Oct. 26.
Mr. Fernandez de Mesa said manufacturers are increasingly considering geographic diversification alongside traditional investment factors such as operating costs and ease of doing business.
He noted that rising industrial land prices in Southern Luzon, an established manufacturing hub, are creating opportunities for industrial expansion farther north.
“The south of Manila has historically been the manufacturing base of the Philippines and is the most mature. As development in the south has driven land prices up, moving toward the north becomes the [naturally] next frontier,” he said.
Mr. Fernandez de Mesa said about half of the companies expanding into LIMA and TARI come from the company’s existing network of industrial locators.
“About 50% of the new companies expanding in LIMA or in TARI come from within our existing ecosystem. For a company looking to expand without concentrating risk, having dual centers in Luzon provides a strategic way to scale while remaining in the Philippines,” he said.
The company is positioning its two estates to support manufacturing investments along the Luzon Economic Corridor, an initiative involving the Philippines, the United States, and Japan that seeks to strengthen infrastructure connectivity and supply chains.
Mr. Fernandez de Mesa said the corridor could help link existing industrial centers and support the expansion of manufacturing operations across Luzon.
ESTATE EXPANSION
Aboitiz Economic Estates is expanding its industrial infrastructure in Batangas and Tarlac to accommodate manufacturers seeking additional production capacity.
The company previously announced plans to expand LIMA Estate in Batangas by 500 hectares (ha), bringing its total area to approximately 1,600 ha from 1,100 ha.
The additional land will support the development of industrial facilities as the company seeks to accommodate more manufacturing locators.
The expansion is expected to benefit from access to major road networks, including the Southern Tagalog Arterial Road and the South Luzon Expressway Toll Road 4.
Aboitiz Economic Estates also earlier announced plans to invest about P7 billion in seven office buildings at LIMA Estate as part of the development of its commercial business district.
The company is also developing ready-built factories to accommodate manufacturers seeking facilities that can be occupied without undertaking their own construction projects.
Meanwhile, TARI Estate in Tarlac City is being developed as another industrial hub, with infrastructure intended to support manufacturing and logistics operations.
The 384-ha estate is being developed in phases, with road networks, utilities, and access infrastructure aimed at improving connectivity for industrial locators.
“In TARI, we’ve worked with [Bases Conversion and Development Authority], with the Tarlac provincial government to create a northbound entry off of SCTEX. So, we try to make movement more fluid,” Mr. Fernandez de Mesa said.
The estate is expected to generate more than 60,000 jobs upon full development, according to the company.
WORKFORCE DEVELOPMENT
Alongside its industrial estate expansion, Aboitiz Economic Estates is developing education and workforce training initiatives to support manufacturers’ requirements for skilled workers.
In August, Batangas State University inaugurated its LIMA Campus, which was developed in partnership with Aboitiz Economic Estates to bring engineering and technology education closer to industrial locators.
The planned 10-ha campus is intended to support industry-based learning and workforce development for companies operating within the estate.
The university’s Industry Advisory Council, composed of representatives from estate-based locators, helps align academic programs with manufacturing requirements, particularly in electronics, automotive components, and advanced manufacturing.
“To move up the value chain, you need to have the required skills ahead of the investment. By bringing education directly into the ecosystem, learning becomes industry-based, allowing locators to attract and retain top talent,” Mr. Fernandez de Mesa said.
The company is also implementing its EaseBiz program to assist industrial locators with Philippine Economic Zone Authority registration, permitting, and other requirements for establishing operations.
The program has assisted nearly 30 locators, according to the company.
“We view these developments long-term as employment centers. By creating complete ecosystems that combine industry, lifestyle, education, and administrative support, we remain confident in the sustained growth of Philippine manufacturing,” Mr. Fernandez de Mesa said.