Metro Manila, Philippines – Germany and the Philippines are set to formalize an investment agreement involving aviation giant Lufthansa Technik during the state visit of German President Frank-Walter Steinmeier—a move Berlin views as a strong signal of confidence in the Philippines as a long-term investment destination.
German Ambassador Andreas Pfaffernoschke said the signing of the arrangement for Lufthansa Technik’s investment in Clark would be among the key economic highlights of the visit.
“You will see during the visit of the president, the signing of the arrangement on Lufthansa Technik investment in Clark is, I think, a very symbolic act and shows clearly our commitment to the Philippines as an investment hub,” Pfaffernoschke said in an interview on The Newsmaker.
The ambassador noted that the planned investment underscores growing German interest in the Philippine market, overriding structural concerns often raised by foreign investors regarding logistics, bureaucracy, and political uncertainty.
Lufthansa Technik is one of the world’s largest aircraft maintenance, repair, and overhaul (MRO) providers, servicing commercial aircraft, engines, and aviation components for airlines worldwide. In the Philippines, Lufthansa Technik Philippines operates a major maintenance facility through a joint venture with MacroAsia Corporation.
Pfaffernoschke said the investment reflects the confidence of German firms in the country’s long-term prospects, pointing to the Philippines’ large consumer market, expanding middle class, English-speaking workforce, and sustained economic growth.
“I know about many companies who are interested in increasing their engagement and doing even more,” he said.
Germany remains the Philippines’ largest trading and investment partner within the European Union, with more than 150 German companies operating in sectors such as manufacturing, semiconductors, automotive components, banking, insurance, pharmaceuticals, and aviation services.
The ambassador noted that Lufthansa Technik’s commitment sends a powerful message to other potential investors.
“With a perspective of 25 years, a new contract of 25 years, it shows that these short-term reflections are not dominant. Predominant are the long-term perspectives for business, and they are good,” he emphasized.
President Steinmeier is in Manila this week for a historic state visit, marking the first time a German head of state has visited the Philippines in more than six decades.
