Global technology and services supplier Bosch is planning to invest in its third business hub in the Philippines.
Andrew Powell, managing director of Bosch in Philippines, disclosed the plan on Thursday, during the company’s 20th anniversary celebration in Manila.
The new business hub will be opened by the year-end in Cagayan De Oro City, dubbed by the United Nations as one of nine “Emerging Cities of Tomorrow”.
Cagayan de Oro provides easy access to a large concentration of markets in Northern Mindanao, including mining and energy. In 2013, Bosch expanded its operations into Visayas and Mindanao with the opening of its Cebu City and Davao City business hubs respectively.
“As we celebrate the 20th anniversary of our office in Manila, Bosch remains strongly committed to the Philippine market through continued product and service diversification, employment growth, compelling social and sustainability programs, trainings, and partnerships,” Powell said. “For 2015, we expect further sales growth in the country based on an increased demand for our innovative products invented for life.”
Bosch closed its 2014 fiscal year with $42.5 million in consolidated sales in the Philippines. Compared to 2013, Bosch had a double-digit growth of more than 45 per cent in 2014 making the Philippines its fastest growing market in Southeast Asia.
Bosch attributed the growth on the performance of the company’s power tools and automotive businesses, along with significant contributions from its security systems business which formally established local operations in 2014.
As of April 2015, Bosch had increased its workforce in the Philippines to nearly 400 associates.
According to the German-based Bosch Group, it sees global sales to grow within an exchange rate-adjusted range of 3 to 5 per cent in 2015 with web-enabled products and internet-based services being one of the focal points of the company’s future business.
In 2014, Bosch launched many new products and connected solutions, including software solutions for smart heating systems and buildings as well as for connected industry and connected mobility.
Bosch reported that it had strengthened its position in the fields of smart homes and automated driving with the complete acquisitions of BSH Hausgeräte GmbH and Robert Bosch Automotive Steering GmbH.
In Asia Pacific, Bosch grew its sales 17 per cent (19 per cent after adjusting for exchange-rate effects) in 2014, to $14.3 billion. At just under 27 per cent of total sales revenue, the region’s share of sales reached a new high.
Sales growth was especially strong in China, rising a nominal 27 per cent to $7 billion. The company achieved a year on year sales growth of around 7 per cent in Southeast Asia by generating $893 million.