In 1979, Mr. Jaime Ongpin, the CEO of Benguet Mining and Chairman of Engineering Equipment Inc. (EEI), and Mr. Felicito Payumo, EVP of EEI, joined forces with Mr. Axel Schroeder, the managing partner of Muenchmeyer Petersen Group (MPC), a finance and trading company in Hamburg, to establish the joint venture Maschinen & Technik Inc. (MATEC). The aim was to serve as a gateway for European technology to the Philippines.
MATEC began by securing agencies of prominent companies such as Siemens AG, Klein, Schanzlin & Becker, Claudius Peters AG, Aumund, Kettenwerke Wickede-Ruhr, Venti-Oelde, Louise Foerdertechnik, Graebner, J.P. Sauer & Sohn, Bauer Compressors Asia PTE. LTD, Voith Hydro, and Voith Turbo.
With an initial workforce of 25 well-trained employees who were transferred from EEI to MATEC, and under the leadership of Dr. Matschuck, a professional engineer with seven years of trading experience in Asia, along with competent division managers, the company flourished despite facing economic challenges towards the end of the Marcos regime. Over its first 15 years, MATEC expanded to 125 permanent employees. MATEC gained recognition largely through its successful association with Siemens AG, particularly in the communication and power sectors. While diversifying into various industrial supply and service areas for industrial and infrastructural development, its core focus remained on power generation, transmission, and distribution activities. Additionally, MATEC secured a substantial market share in Siemens products within the communication and telephone sector.
In its early years, MATEC effectively promoted German machinery for the metal, woodworking, and cement industries. A significant milestone was reached when MATEC started supplying coin blanks and minted coins to the Central Bank of the Philippines after successfully providing a series of coin presses to the Central Bank's mint.
In 1989, facing a significant downturn in business, EEI made the strategic decision to divest its shares in MATEC. The ownership of MATEC was subsequently transferred to the MPC group and the Matschuck family.
MATEC's performance in the power generation sector, such as the rehabilitation of thermal power plants in Sucat and Malaya, the rehabilitation of several hydro power plants (originally supplied by Siemens or Voith Hydro), rural electrification projects on seven islands using diesel generators, and the generation of greenfield power for the construction of the IPP coal fired power plant in Sual. The delivery of several private power stations, culminated in guiding Siemens to secure the award from Philippine First Gen for the first 1000 MW combined cycle power plant contract in Sta. Rita Batangas. This contract marked the largest single contract ever won by a German company in the Philippines and was signed in the presence of President Fidel Ramos and the German Chancellor Helmut Kohl.
During the late 1980s, MATEC sought to expand its business by investing in various ventures. It acquired NI Corporation, a local switchboard manufacturer to complement its construction business, Philippine Electronic Industries (PEI) - a trading company with expertise in electronics, specifically testing and measuring equipment to augment MATEC's communication business, and Trans-Orient Overseas, a manpower source for local and overseas workers for Siemens Power Projects. However, due to the challenging business environment in the mid-1980s, these affiliated companies had to be divested.
Despite foreign currency restrictions during this period, MATEC's import business remained stable, as the company effectively managed to provide its own foreign funds. The company expanded its activities beyond the borders of the Philippines by winning an international contract to electrify the new Sultan Palace in Brunei. MATEC also secured subcontracting opportunities with Japanese and German contractors, who financed the projects and paid MATEC in foreign currency. As a recognition of its achievements, MATEC received a citation from the central bank as one of the top foreign exchange earners.
In 1996, Siemens achieved its corporate objective of generating a substantial annual turnover in the Philippines through projects like the Sta. Rita power plant and contracts with the National Power Corporation (NPC), particularly in powerline carrier systems. Additionally, MATEC's success in capturing a significant share of the Private Automated Branch Exchange (PABX) market prompted Siemens to terminate MATEC's agency contract and establish its own subsidiary. This sudden and significant change forced a majority of MATEC's personnel to transfer to Siemens Philippines. While Siemens proposed integrating MATEC as a joint venture partner, this offer was declined by MATEC's owners. Despite this, with the retention of other agencies and key senior managers, alongside 25 staff members opting to remain with MATEC, the decision was made to persevere and refocus on expanding the industrial product lines.
By adding Swiss company Burckhardt Compression to its portfolio, along with existing partnerships with German companies Bauer Compressors Asia PTE LTD and J.P.Sauer & Sohn, MATEC successfully broadened its presence in the compressor market.
Leveraging MATEC's reputation for successfully transacting with government entities, Wagner Biro Austria entrusted MATEC's management to advocate for their involvement in the presidential bridge program. MATEC secured a substantial contract for the Department of the Interior and Local Government, facilitating further success for Wagner Biro in subsequent dealings.
Building on its experience in power generation within rural areas and expertise in photovoltaic (PV) technology from Siemens projects involving remote microwave towers, MATEC seized the opportunity presented by the government's initiative to electrify remote rural regions. MATEC secured contracts for various internationally funded home solar projects, supplying and installing systems in over seven thousand rural households.
When the international push for Renewable Energy (RE) initiatives reached the Philippines, MATEC once again positioned itself as a trailblazer in adopting new technologies in wind and solar power. Drawing inspiration from Germany's leadership in this area, MATEC actively engaged in technical committees of the National Renewable Energy Board (NREB) to advocate for policies like the Feed-In Tariff (FIT) and net metering for on-grid solar applications, as well as participation in NPC's Small Power Utilities Group (SPUG) working groups for island electrification with integrated RE solutions.
By participating in these initiatives, MATEC facilitated the installation of both on-grid and off-grid solar systems, including rooftop installations and applications for streetlights nd solar-powered pumping stations. This shift diversified MATEC's revenue streams from traditional indent business to direct invoicing, establishing MATEC as a local contractor within the renewable energy sector.
With successful OEM roles in greenfield projects, MATEC oversaw the implementation of half of the initial batch of FIT-approved greenfield solar plants, demonstrating its expertise in project supervision. MATEC also ventured into other RE sectors, such as Biomass, and pioneered installations in pico and microhydro projects, yielding modest yet noteworthy outcomes.
Through collaborations with international PV system integrators, MATEC honed its local expertise, solidifying its reputation as a competent and reliable partner in the Philippine PV solar industry. MATEC's portfolio includes a diverse range of installations, from residential to industrial rooftops, spanning from 5 kW to 3 MW in size. The company has earned trust as a designer, supplier, and installer for both on-grid and off-grid projects, consistently delivering projects on time, within budget, and meeting quality standards.
Given its track record of successful project completions, MATEC has become a respected consultant for investors and financial institutions, as well as a dependable owner's engineer for plant developers. This established reputation underscores MATEC's standing as a trusted and versatile player in the Philippine renewable energy landscape.
Apart from its endeavors in solar power, MATEC's history also encompasses a 40-year involvement in the mass transportation sector. Despite predictions of a sectoral revival and expansion, the recent years witnessed a resurgence in mass transportation, to which MATEC actively contributed.
Through a partnership with the Voith Agency, MATEC engaged in rehabilitating and upgrading the rolling stock of key transportation networks such as Philippine National Railways (PNR), Metro Rail Transit (MRT3), and Light Rail Manila Corporation (LRMC). The company provided spare parts and complete transmission systems, gearboxes, and couplers designed to meet energy efficiency standards as replacements. MATEC helped introduce Voith Austria's new E-drive technology into 48 trains procured from China's CRRC Dalian and facilitated the rehabilitation of ADTRANZ's propulsion system for LRMC.
MATEC has had a long-standing presence in four municipalities of Metro Manila. Beginning with an office in Makati, the company later relocated to an EEI building in Pasig for two years as part of cost-cutting measures. Subsequently, MATEC moved to a larger office in E. Rodriguez, Libis, Quezon City, following business growth. In 2000, MATEC transitioned to its own building in Alabang, Muntinlupa, coinciding with its collaboration with subsidiary PEI.
In 2019, the MPC Group, which acquired Ferrostaal, a renowned German trading and plant construction firm, streamlined its focus on capital investment projects, shifting away from trading activities. With the restructuring, the Matschuck family acquired MPC's shares, aligning with changes in MATEC's management framework. A management board assumed operational responsibility at MATEC during this transition.
To incentivize and retain their skilled workforce amid the challenges posed by the COVID-19 pandemic from 2020 to 2022, MATEC took the proactive step of distributing a twenty percent stake in the company to its managers and expert engineers. This move aimed to acknowledge and retain top talent within the organization during turbulent times, reinforcing MATEC's commitment to its workforce and sustaining expertise within the company.
As MATEC reflects on the achievements of 2023 and continues expanding its business operations in 2024, the company can confidently anticipate celebrating its upcoming 45th anniversary. This milestone represents a significant journey of growth, innovation, and resilience in adapting to changing industry landscapes over nearly five decades.
MATEC's upcoming anniversary provides an opportune moment to recognize and celebrate the company's longstanding commitment to excellence, its contributions to the renewable energy and mass transportation sectors, and its dedication to building a skilled and reliable workforce. It also serves as a testament to MATEC's ability to navigate challenges, embrace opportunities, and evolve with the times.
As MATEC looks ahead to its 45-year anniversary, it stands poised to continue its legacy of success, innovation, and service excellence, setting the stage for even greater accomplishments in the years to come. The milestone offers a moment of reflection on past achievements while inspiring confidence in a future filled with new possibilities and continued growth for the company and its stakeholders.
