Strong peso stalls expansion plans of battery maker

MANILA, Philippines – The country’s biggest producer of automotive batteries, Philippine Batteries Inc (PBI), is holding off on its expansion plans due to the strong peso.

The peso has risen in value against the US dollar, making their exports more expensive for western markets and other imports more competitive in the local market, explained Don Albert Cuesta, President of PBI’s marketing arm Oriental & Motolite Marketing Corp.

A stronger peso could further open the market to cheap imports from South Korea, Indonesia and Thailand said Cuesta in a talk at the Competitive Currency Forum in Makati City on August 17. 

The company is monitoring the direction of the local currency as it studies where to expand, he said.

He said their “Motolite” product accounts for up to 40% of the domestic market for batteries but the market is small. That makes expansion a key ingredient for growth, he added.

“We do not know for how long and how far this currency situation will go but it can certainly come to a point where we will be attracted to invest in manufacturing abroad or simply do trading here,” said Cuesta.

Motolite’s international markets include Australia, its biggest buyer; United States; New Zealand; Malaysia; and Indonesia. 

Cuesta said, “the question is where do we put now the additional capacities?” – Rappler.com