Once fully operational, the company will close down its Head Sports hub in China and move to AIE as its hub in the Philippines, Lagdameo said at the business forum held at Ayala Malls, Abreeza, Friday (July 19).
“Head Sports will start producing by the end of the year or early next year when it is fully operational and they will close their factory in China and move to the Philippines,” Lagdameo said.
Head Sport Philippines Inc., a Philippine Economic Zone Authority-registered company has acquired 5 hectares of land at the AIE to build its factory. The location close to the port is plus factor for the exporting business of Head Sports, Lagdameo said.
“It’s a huge factory and it will generate thousands of jobs in the Davao del Nort,” he said adding that it is currently AIE’s biggest locator.
He added that the Austrian-American sports equipment and apparel manufacturer, Head Sports, controls 40 percent of the global tennis ball market.
The main raw material for tennis ball production is rubber. This is the main reason Head Sport Philippines opened its hub in Mindanao.
Data shows the Philippines ranks 6th in world rubber production and production areas are located in Mindanao, particularly in North Cotabato and Zamboanga (Sibugay).
Lagdameo said Head also believes its location in Mindanao will help encourage rubber planters in the region to plant more rubber.
He said getting a European company with European standards to invest in Mindanao is exciting. “The significance of this is to attract and bring more investments in Mindanao.”
Lagdameo also cited the cold storage facility, GMAC Logitech Refrigeration Corporation, a joint venture of AC Logistics Holdings and Glacier Magafridge, Incorporated (GMI) as another big-ticket investment that located at the AIE.
The facility can store up to 12,000 industrial pallets to help address the growing cold storage demand of several industries in Mindanao.
It is the second cold storage facility of GMAC, the first of which recently opened in Cagayan de Oro City with more than 5,000 industrial pallets.
AC Logistics is a wholly owned subsidiary of Ayala Corporation holding a portfolio of logistics companies while GMI is touted as one of the largest cold chain storage and logistical services providers in the Philippines. It has been in the industry since 2005.
GMAC Davao Cold Storage could be considered one of the biggest and GMAC is eyeing to expand more in the light of an increasing demand for cold chain solutions nationwide.
The new cold storage facility will start operations by the first quarter in 2025.
Lagdameo said the fruits of these huge capitalizations will go back to Mindanao.
Ricardo "Cary" Floirendo Lagdameo
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