MANILA — Banknote-validating and currency-handling machine manufacturer Japan Cash Machine Co. will relocate part of its production in China to the Philippines to avoid the threatened imposition of another batch of higher U.S. tariffs.
The company is seeking to reduce the ratio of dependence on China in overseas production from the current 92 percent to 50 percent in the fiscal year ending in March 2021, a spokesman told NNA on Thursday.
The Japanese firm plans to shift production of bill validators for casino gaming machines and related printer products that are included in the fourth U.S. list of higher tariffs on Chinese goods worth about $300 billion in total.
The Japanese firm has local partners in some parts of the Southeast Asian country such as Cebu Island, where the company began outsourcing production in 2012, according to the spokesman.
It will consider establishing a production management unit in the Philippines when its production in the country reaches 50 percent of total overseas output, he said.
The company boasts an estimated 65 percent market share in the bill validator segment of the U.S. casino industry and ships a large portion of its products for the market from China, according to the spokesman.