Aboitiz sees demand for dual-site manufacturing operations in Luzon
Aboitiz Economic Estates is positioning its LIMA Estate in Batangas and TARI Estate in Tarlac as complementary manufacturing hubs, as companies seek geographic diversification to manage supply chain risks. The company is expanding LIMA by 500 hectares and developing TARI, with both estates expected
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.
Company 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 26 Oct.
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.
About half of the companies expanding into LIMA and TARI come from the company's existing network of industrial locators, Mr Fernandez de Mesa said. '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.' 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.
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 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.
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.
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 company is also implementing its EaseBiz program to assist industrial locators with Philippine Economic Zone Authority registration, permitting, and other requirements for establishing operations.
