MANILA - A South Korean cooperative has committed to establish an assembly plant for tractors, harvesters, planters and farming accessories in the Philippines next year, Agriculture Secretary Emmanuel Piñol said Tuesday.
The Korean Agricultural Machinery Industry Cooperative (KAMICO) - composed of some 30 companies - will build a 50-hectare assembly plant in Malvar, Batangas, Piñol said in a statement.
"KAMICO will also establish a Research and Development Center and a Training Center for farmers and equipment operators," he said.
KAMICO president Shin-gil Kim signed a memorandum of agreement with agriculture officials on November 20, about a year after 100 executives of farm equipment and machinery firms held a convention in Cebu, Piñol said.
"The 30 companies decided to establish their assembly and manufacturing facilities in the Philippines in view of the aggressive mechanization program of the government," he said.
The government will allocate P5 billion annually for a mechanization fund for farmers once the rice tariffication bill is signed into law, Senate Agriculture and Food Committee chair Cynthia Villar earlier said.