THE Department of Trade and Industry (DTI) said that a subsidiary of outsourcing firm Wagmi Solutions plans to establish a manufacturing facility in the Philippines to diversify operations away from Mexico and China.

In a statement on Monday, the DTI said it met with representatives of Wagmi on the sidelines of the US-Japan-Philippines Trilateral Meeting to discuss the project of unit NanoForge Technologies.

“The proposed facility will specialize in the production of high efficiency particulate air (HEPA) filters, designed to remove a significant percentage of airborne particles, including dust, pollen, mold, bacteria, and viruses,” the DTI said.

“Nanoforge will manufacture and export these HEPA filters to its main customer, Medify Air — a major air purifier brand in the US,” it added.

The project is also expected to directly benefit coconut farmers, as the plant will use activated carbon sourced from coconut shells.

“We welcome NanoForge’s investment, which aligns perfectly with our goals to strengthen the coconut industry and create more jobs,” Trade Secretary Alfredo E. Pascual said.

“Through the Philippine Economic Zone Authority (PEZA), we are committed to ensuring that this venture is successful and beneficial for all parties involved,” he added.

According to the DTI, NanoForge’s air filters have residential, commercial, and industrial applications.

“In 2024, Wagmi registered NanoForge Technologies in the Philippines to produce HEPA filters for Medify Air, aiming to diversify manufacturing operations currently based in China and Mexico,” it added.

Following the meeting with the DTI, Wagmi will meet with PEZA officials to discuss the incentives under the Corporate Recovery and Tax Incentives for Enterprises Act.

These incentives include an income tax holiday, reduced corporate income tax, and tax- and duty-free imports of capital equipment, raw materials, and spare parts.

“Additionally, they provide value-added tax exemptions, a substantial domestic sales allowance, and exemption from local government taxes and fees,” the DTI said. — Justine Irish D. Tabile