A Department of Agriculture (DA) program to establish the country’s first indigenous rubber tire manufacturing plant is moving closer to realization with the finalization of plans by a company from Finland to undertake the technical and feasibility study for the project.

Agriculture Secretary Emmanuel F. Piñol on May 29, 2017/Monday told media people in an interview that Black Donuts Engineering Inc. president and CEO Kai Hauvala informed him that his company is willing to immediately conduct a study to determine the technical and financial requirement for the tire manufacturing facility.

“Hopefully, we can have a memorandum of agreement signed by September,” Piñol said.

The DA Chief met with Black Donuts executives in Helsinki, Finland last week.

“The tire facility is expected to provide ready market for the rubber produce’ of the farmers, who will also be part owner of the corporation, which is proposed to be named Pilipinas Agila Tires,” Piñol said.

Under an agreement with the Philippine Rubber Farmers’ Association (PRFA), Black Donuts will help in the construction, operations, and including the training of farmers.

The DA committed to help the company by consolidating farmers’ groups and coordinating their production so they could supply the rubber requirement of the proposed tire company, which is expected to produce around four to five million tires annually.

“Black Donuts said the (Filipino-made) tire will be made of 50% natural rubber and 50% synthetic rubber,” he added.

The tire manufacturing facility could employ about 800 Filipino engineers and workers once it is established sometime next year.

“If we have local demand, we can stabilize prices,” Piñol said.

Executives from Black Donuts visited some of the rubber plantations in Mindanao last January 2017 to assess the capacity of the Philippines to supply the raw material requirement of the proposed tire manufacturing company. ### (Kristel Merle, DA-AFID)

Reference:
Agriculture Secretary Emmanuel F. Piñol