A Bulacan-based company will get incentives for investing P356.4 million to manufacture bicycles for export, according to the Board of Investments (BOI).
In a statement on Wednesday, the attached agency of the Department of Trade and Industry (DTI) approved the application of TRINX Bicycle Sport Technology Corp. (TBSTC) as a producer and exporter of bicycles. This qualifies the company for incentives provided in the 2020 Investment Priorities Plan.
TBSTC is set to manufacture road and mountain bikes, foldable electric bikes and other bike variants, 75 percent of which is expected to be shipped out to the United States and Europe. The rest is allotted for the domestic market.
By September this year, TBSTC’s facility in Bulacan is expected to begin commercial operations. The plant has a production capacity of up to 200,000 units annually and will initially employ 65 personnel. Work force will be increased to 100 by the fifth year of operations.
Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said producing bicycles will help the government in encouraging the public to use alternative transportation modes, such as cycling.
“This is timely and relevant, as it will not only supply the local demand for bicycles and electric bikes but also strengthen our position as a net exporter of bicycles with strong demand from overseas markets, including those in which we enjoy zero-duties under the Generalized System of Preferences scheme,” Rodolfo said.
Data from Philippine Statistics Authority showed that the country is a net exporter of bicycles in terms of value as of 2019 and enjoys a trade surplus of $10.2 million. During this period, the Philippines’ outbound shipments for bicycles amounted to $39.1 million, with the United Kingdom and Ireland as top export markets. Bicycle imports, meanwhile, reached $28.9 million for the period.
The bike manufacturing firm is 60 percent Filipino-owned. The remaining stake is being held by China-based Trinity Group which owns the Chinese TRINX brand. The said brand has over 1,000 terminal sales outlets.
Trinity Group, which was founded in 1990, is an enterprise group involved in the development, production and distribution of complete bicycles and bicycle components. It launched the TRINX brand in 2006, with high-grade and mid-grade mountain bikes as its main products.
The group has an annual capacity of 2 million complete bicycles, 1.5 million frames and 1 million forks.
Image credits: Bernard Testa
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