July 7, 2008
RP firm to produce low-cost motorcycle Filipino-owned Blaze Motortech Corp. is investing P112.853 million for the establishment of a new motorcycle production facility in Meycauayan, Bulacan as it intends to sell motorcycles for as low as P25,200 per unit.
Based on its application for registration with the Board of Investments, the company has committed to assemble eight new motorcycle models with the most affordable model QH110-8 having an estimated retail price of only P25,200 per unit while the top end models QH 200 GY III and QH 200 GY VII have estimated retail price at P42,000 a unit.
It would start production at its new plant in Meycauayan, Bulacan this month with an annual production capacity of 10,999 units.
The company has an existing technical licensing agreement with Chongqing Koayeng Motorcycle Industry Co. Ltd. for the supply of some of knock-down parts that are not locally manufactured.
But Motortech president Wilbert A. Lim said it would also prioritize local procurement to promote local parts manufacturing and its supporting industry.
As a percentage to its overall manufacturing cost, the company has placed the local value content for its motorcycles at 39 percent.
Among the motorcycle parts and components that are available locally are battery, muffler, bolts and nuts, tires, mirror, fender including mud guard, seats upholstery and tool kit and manual.
The company said it is now developing body frames, plastic parts and electrical components initially for their own consumption. Later on, the firm plans to supply to other manufacturers of and distributors of motorcycles.
Blaze is an existing participant of the Motor Vehicle Development Program as a motorcycle assembler but has transferred its plant to Meycauayan, Bulacan from Pasig .
Already, the Board of Investments management committee said the project can be considered as a new project because the proposed investment of P112.853 million is over 201 percent of the required company fixed assets.
Based on its 2007 financial statement, the company’s fixed asset was placed at P56.094 million. It has an authorized capital stock of P120 million, subscribed capital of P30 milllion and paid-up capital of P20 million.
The project would funded through equity contributions from its shareholders, supplier’s credit and loan.