Inigo S. Roces / | August 25, 2016 17:06
Restructure to accommodate manufacturing plans
The board of Ayala's automotive group recently approved the change in name of Ayala Automotive Holdings Inc. to AC Industrial Technology Holdings Inc., trading under the name AC Industrials.
The subsidiary will continue to hold the Ayala group’s automotive distributorship interests, which include the 13 percent stake in Honda Cars Philippines, Inc. (HCPI), the 15 percent stake in Isuzu Philippines Corp. (IPC), and the wholly owned interests in Automobile Central Enterprise Inc. (ACEI), the official Philippine importer and distributor of Volkswagen, and in Adventure Cycle Philippines Inc. (ACPI), the official motorcycle distributor of KTM in the Philippines. This also encompasses wholly-owned dealerships of Honda, Isuzu, and Volkswagen brands.
A new addition to AC Industrials will be KTM Asia Motorcycle Manufacturing Inc. (KAMMI), formed to manufacture KTM motorcycles in the country by 2017, as part of its partnership with KTM AG. KAMMI will handle the manufacturing operations of Duke 200, Duke 390, RC200, and RC390 motorcycles models which Ayala initially announced would by handled by its other subsidiary, Integrated Micro-Electronics, Inc. (IMEI). The facility will have an initial production run of 6,000 units, eventually growing to meet the plant’s full capacity of 20,000 units annually. Besides the domestic market, it plans to export to neighboring ASEAN markets as well as China
Management of the subsidiary will be led by Jaime Augusto Zobel de Ayala as Chairman, Fernando Zobel de Ayala as Vice Chairman, Arthur Tan as President and Chief Executive Officer, and John Philip 'JP' Orbeta as head of the automotive dealership and distributorship businesses within AC Industrials.
In its announcement, the company stated that the change in name and governance restructuring was made as part of its long-term strategy to develop an industrial portfolio for its existing and future assets in automotive and manufacturing industries. Ayala is anticipating a revival of the Philippine manufacturing industry, and in domestic and worldwide demand in the automotive sector.
Ayala Corp. had only recently consolidated its automotive interests under Ayala Automotive Holdings upon acquisition of Philippine importation and distribution rights for Volkswagen passenger vehicles in 2013.