KTM PH Inaugurates New Motorcycle Plant in Santa Rosa, Laguna

KTM Asia Motorcycle Manufacturing, Inc. (KAMMI), a joint venture partnership between Adventure Cycle Philippines, Inc.--owned by AC Industrial Technology Holdings, Inc. (AC Industrials), a member of Ayala Group of Companies--and Austrian motorcycle giant KTM AG (Kronreif & Trunkenpolz Mattighofen AG), recently inaugurated its state-of-the-art manufacturing facility at the Laguna Technopark in Santa Rosa, Laguna--nearly four months after the first locally-assembled KTM motorcycle rolled out of the KTM Philippines plant.

KTM Philippines

"We are further expanding our capabilities as part of our thrust of fostering synergies with Ayala companies," AC Industrial's CEO Art Tan said as he disclosed the Ayala conglomerate's foray into motorcycle assembly as being in line with the company's push in bolstering its manufacturing portfolio. "Combining the competencies of our manufacturing and distribution arms allows us to scale our presence in this space, taking advantage of evolving movements in technology, automation, and industrial technology."

The KTM Philippines plant currently assembles four models: the KTM 200 Duke, the KTM 390 Duke, the KTM RC 200, and the KTM RC 390. Using a single assembly line, only one model is manufactured at any time depending on the demand--at the time of our plant tour, it was the 390 Duke--with both the local and imported parts being spread out through the line, from putting the frame together at the start to the final inspection after each and every motorcycle is fueled with .85 liters of gasoline and is then tested using a state-of-the-art dyno. Although KTM Philippines plans to have an initial production run of 6,000 motorcycles annually, with a goal of eventually increasing it to 10,000 units in the near future, the facility currently assembles only 20 to 28 units per day--roughly 8,000 units annually at the current rate--as the plant and its workers get up to speed with putting together all four models. Customers looking for other models though, specifically the bigger displacement ones, will have to wait a little longer to get their motorcycles as these will still be imported from KTM's home country of Austria. As for its distribution, KTM Philippines hopes to ramp up its network to 32 dealers nationwide this year, with each one providing sales and aftersales support, on top of KTM's plans to export the Philippine-assembled models to its ASEAN neighbors as well as China where 60 million motorcycles are supposedly sold per year. "This investment is part of our belief that manufacturing should be a key driver of our country’s inclusive growth going forward," said KAMMI President and COO Dino Santos as he extolled the impact of the plant's opening to the Philippine economy. "It provides jobs, supply chain opportunities, and helps put the country in the map as a center for innovation and industrialization."

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