Ayala Corporation announced a joint venture with leading global motorcycle manufacturer, KTM AG to be the exclusive local distributor of KTM products and to manufacture motorcycles for the Philippines and for export to China and Southeast Asian countries.
KTM Chief Executive Officer Stefan Pierer stated, “We are delighted to have found a strong and capable Asian partner in the Ayala group, one of the leading conglomerates in the Philippines, a country we view as a key platform for achieving our global growth strategy. Ayala’s capabilities in manufacturing, distributorship and dealership, as well as its regional expertise and excellent reputation, make them the ideal strategic partner for our READY TO RACE aspirations. We look forward to a long and fruitful relationship and plan to rapidly grow KTM and its brands across Asia.”
The new business will be housed under the Ayala Automotive unit, with production being subcontracted to IMI. “This partnership is the first of many investments as we ramp up our manufacturing portfolio. Over the years, we have built a long track record of excellence in manufacturing and engineering. We believe that manufacturing should be a critical component for the country’s growth moving forward, providing thousands of jobs, creating numerous ancillary business opportunities, and helping drive inclusive growth for the Philippines,” said Jaime Augusto Zobel de Ayala, Chairman and CEO of Ayala Corporation.
Over the last five years, the Ayala group has invested over half a trillion pesos in capital expenditures, investing in businesses that are critical to the country’s economic growth. It has paid P170 billion in aggregate corporate taxes and has given direct and indirect employment to 90,000 Filipinos. Today, it continues to show its confidence to the Philippine economy by earmarking P174B in total capital expenditures across the group in 2016, Mr. Fernando Zobel added.
Photo from http://press.ktm.com/