Inside KTM Philippines Motorcycle Plant in Sta. Rosa Laguna

By Gilbert Chao on June 7, 2017

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KTM Asia Motorcycle Manufacturing, Inc. (KAMMI), a joint-venture partnership between Adventure Cycle Philippines, Inc., owned by AC Industrial Technology Holdings, Inc. (ACIndustrials), a member of Ayala Group of Companies, and Austrian motorcycle giant KTM AG (Kronreif & Trunkenpolz Mattighofen AG), inaugurates its state-of-the-art manufacturing facility at the Laguna Technopark in Sta. Rosa, Laguna.

The KTM Philippines plant – which assembles four (4) KTM models such as the KTM 200 DUKE, KTM 390 DUKE, KTMRC 200 and KTM RC 390 – will have an initial production run of 6,000 motorcycles, with the goal of eventually expanding to 10,000 units annually. Apart from the domestic market, KAMMI plans to export to neighboring ASEAN markets as well as China, where some 60 million motorcycles are sold per year.

Art Tan, AC Industrials CEO, disclosed that the Ayala group’s foray into motorcycle assembly is in line with the company’s push in bolstering its growing manufacturing portfolio. “We are further expanding our capabilities as part of our thrust of fostering synergies with Ayala companies,” Tan said. “Combining the competencies of our manufacturing and distribution arms allows us to scale our presence in this space, taking advantage of evolving movements in technology, automation, and industrial technology.”

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Meanwhile, Dino Santos, KAMMI’s President and COO, extolled the impact the plant’s opening has to Filipinos and the Philippine economy. “This investment is part of our belief that manufacturing should be a key driver of our country’s inclusive growth going forward,” he explained. “It provides jobs, supply chain opportunities, and helps put the country in the map as a center for innovation and industrialization.”

Moreover, they hope to ramp up their network to 32 dealers nationwide this year, each one providing sales and after-sales support.

With this development, AC Industrials–which consolidates the Ayala Groups automotive and manufacturing segments — seeks to play a bigger role in manufacturing and contribute to the country’s rise as a Southeast Asian (ASEAN) industrial hub. Furthermore, this bold move is deemed a milestone not only in the Ayala Group’s history, but for the country as well.